Methodology
Our high-margin stocks screener surfaces the most profitable businesses in the universe: gross margins above 40%, operating margins above 20%, and net margins above 15%. High margins are the clearest single signal of pricing power — the ability to pass costs through to customers without losing volume. Businesses that sustain high margins over decades typically have structural advantages: brand, network effects, IP, switching costs, or scale. These are the classic wide-moat compounders.
Screener Statistics
- Companies matching: 843
- Average P/E: 18.0
- Average ROE: 18.5%
- Average dividend yield: 68.6%
- Average market cap: $66.6B
- Top sectors: Financial Services (377), Technology (87), Healthcare (70)
Top Matches
- NVIDIA Corporation (NVDA) — Technology · P/E 27.0
- Apple Inc. (AAPL) — Technology · P/E 40.0
- Microsoft Corporation (MSFT) — Technology · P/E 29.5
- Alphabet Inc. (GOOGL) — Communication Services · P/E 14.3
- Alphabet Inc. (GOOG) — Communication Services · P/E 14.2
- Taiwan Semiconductor Manufacturing Company Limited (TSM) — Technology · P/E 24.7
- Broadcom Inc. (AVGO) — Technology · P/E 44.1
- Meta Platforms, Inc. (META) — Communication Services · P/E 21.3
- Eli Lilly and Company (LLY) — Healthcare · P/E 46.1
- SK hynix Inc. (SKHY) — Technology · P/E 7.2
- Micron Technology, Inc. (MU) — Technology · P/E 12.6
- JPMorgan Chase & Co. (JPM) — Financial Services · P/E 14.4
- Visa Inc. (V) — Financial Services · P/E 34.9
- Johnson & Johnson (JNJ) — Healthcare · P/E 41.7
- ASML Holding N.V. (ASML) — Technology · P/E 45.3
- Mastercard Incorporated (MA) — Financial Services · P/E 35.0
- Palantir Technologies Inc. (PLTR) — Technology · P/E 166.5
- Cisco Systems, Inc. (CSCO) — Technology · P/E 32.6
- Oracle Corporation (ORCL) — Technology · P/E 21.9
- The Coca-Cola Company (KO) — Consumer Defensive · P/E 27.9
- The Procter & Gamble Company (PG) — Consumer Defensive · P/E 24.2
- Bank of America Corporation (BAC) — Financial Services · P/E 12.2
- Applied Materials, Inc. (AMAT) — Technology · P/E 36.4
- Philip Morris International Inc. (PM) — Consumer Defensive · P/E 30.4
- Lam Research Corporation (LRCX) — Technology · P/E 37.9
- Novartis AG (NVS) — Healthcare · P/E 24.3
- Morgan Stanley (MS) — Financial Services · P/E 15.2
- HSBC Holdings plc (HSBC) — Financial Services · P/E 12.5
- Texas Instruments Incorporated (TXN) — Technology · P/E 40.5
- Royal Bank of Canada (RY) — Financial Services · P/E 18.4
- SAP SE (SAP) — Technology · P/E 29.3
- AstraZeneca PLC (AZN) — Healthcare · P/E 26.2
- The Goldman Sachs Group, Inc. (GS) — Financial Services · P/E 13.3
- Netflix, Inc. (NFLX) — Communication Services · P/E 17.9
- Wells Fargo & Company (WFC) — Financial Services · P/E 11.9
- Amgen Inc. (AMGN) — Healthcare · P/E 28.6
- Mitsubishi UFJ Financial Group, Inc. (MUFG) — Financial Services · P/E 14.8
- Arista Networks, Inc. (ANET) — Technology · P/E 58.1
- KLA Corporation (KLAC) — Technology · P/E 45.7
- Analog Devices, Inc. (ADI) — Technology · P/E 51.4
- BHP Group Limited (BHP) — Basic Materials · P/E 22.1
- QUALCOMM Incorporated (QCOM) — Technology · P/E 21.2
- Sandisk Corporation (SNDK) — Technology · P/E 18.0
- Salesforce, Inc. (CRM) — Technology · P/E 21.1
- BlackRock, Inc. (BLK) — Financial Services · P/E 26.7
- McDonald's Corporation (MCD) — Consumer Cyclical · P/E 20.9
- Union Pacific Corporation (UNP) — Industrials · P/E 23.5
- Banco Santander, S.A. (SAN) — Financial Services · P/E 10.2
- Novo Nordisk A/S (NVO) — Healthcare · P/E 9.7
- NextEra Energy, Inc. (NEE) — Utilities · P/E 14.8
Frequently Asked Questions
Why do high margins matter?
High margins indicate pricing power — the ability to charge more than costs without losing customers. That pricing power comes from brand, switching costs, network effects, or scale advantages. These are the building blocks of durable moats.
Do high-margin businesses grow slower?
Not necessarily. Some of the highest-margin businesses (software, luxury, payment networks) also grow the fastest because their marginal cost of delivering additional units is near zero.
Are high-margin stocks cyclical?
Less cyclical than commodity businesses. High margins act as a buffer — a company with 30% operating margins can absorb cost shocks or revenue dips more easily than one operating at 5%.