Remember when your parents warned you that the television, which they fondly referred to as the idiot box, would take over the world?
They probably weren't thinking about video on demand and high-speed Internet, but their prophecy has come to pass: Verizon is the region's best performing company, edging out Comcast for the top spot in the Pittsburgh Post-Gazette's Top 50.
The rankings are based on seven factors: revenue and revenue growth during a company's most recent fiscal year; net income and net income growth for the same period; market capitalization (a measure of a company's market value determined by multiplying its share price by the number of shares outstanding); 2012 stock performance; and return on equity, which measures how effectively a company's managers deploy capital provided by shareholders.
New York-based Verizon, which placed third the previous year, earned the top spot based on its No. 1 ranking for net income and market cap and its No. 2 finish in the revenue category. Philadelphia-based Comcast finished in the top 10 of six of the seven categories. The highest marks it achieved were third-place finishes for net income and market cap. The cable system operator/entertainment giant also finished third in the growth category.
The top of the list is dominated by large companies that are based outside the region, including five that are based overseas: Germany's Siemens AG, United Kingdom health care product provider GlaxoSmithKline, German drug and chemicals producer Bayer, the Netherlands' Royal Philips Electronics, and German chemicals producer Lanxess.
Only two home-grown companies finished in the Top 10.
Moon titanium producer RTI International Metals earned the No. 7 spot after finishing first in revenue growth and net income growth. RTI was the top performing company in the growth category, which is based just on revenue growth, net income growth, stock price change and return on equity.
PPG Industries finished tenth, buoyed by its status as the region's third-best performing stock. Its only other Top 10 finish came in return on equity, where it placed seventh.
Lanxess, the top performer on last year's list, fell to 12th place on this year's roster. The company has its North American headquarters in Findlay.
Finishing just ahead of Lanxess in 11th place was Wabtec. The Wilmerding-based rail industry supplier finished fourth in revenue growth and ninth in net income growth, propelling it to a second place finish on the growth list.
-- Len Boselovic: email@example.com or 412-263-1941 First Published May 3, 2013 4:00 AM