At The Motley Fool, we like companies with a high level of insider ownership. We believe that leaders with large ownership stakes in their companies will have a greater incentive to do what's best for the business. The record appears to bear this theory out, since such companies tend to outperform.
Compare the performance of Garmin
With all of this in mind, I used our new CAPS screening tool to look for companies with high insider ownership. Below, you'll find five companies whose insiders hold at least 20% of shares.
They also have:
- Market caps greater than $150 million.
- Five-star ratings, the highest possible, from our CAPS community.
Remember, in the first year for which we have data, five-star companies outperformed with an average return of nearly 28%.
Company |
Share Price |
Sector |
Market Cap |
---|---|---|---|
Fuel Tech |
$24.13 |
Industrial Goods |
$542 million |
IPG Photonics |
$18.41 |
Technology |
$815 million |
Navios Maritime |
$10.28 |
Services |
$1.1 billion |
Steel Dynamics |
$37.77 |
Basic Materials |
$7.1 billion |
ShengaTech |
$7.74 |
Basic Materials |
$419 million |
Data from Motley Fool CAPS and Yahoo! Finance as of June 10.
Of course, this screen is only a starting point in the research process. Come and join us on Motley Fool CAPS to dig into these companies further. Let our 105,000-strong (and counting) CAPS community help you make better stock selections.
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