In The Lead: Top 50 / Pittsburgh region's overall top-performing public companies
Verizon finishes again in top spot, besting European-based GlaxoSmithKline and Royal Philips
May 15, 2014 12:19 AM
Mary Altaffer/Associated Press
New York-based Verizon once again became the Pittsburgh region's top public company.
By Len Boselovic / Pittsburgh Post-Gazette
Telecommunications giant Verizon defended its title as the region's top performing company, beating out Glaxo-SmithKline and Royal Philips Electronics.
Comcast, last year's second place finisher, dropped to fifth place.
The rankings are based on seven factors: revenue and revenue growth during a company's most recently reported fiscal year; net income and net income growth for the same period; market capitalization (a measure of a company's value determined by multiplying its share price by the number of shares outstanding); how well a company's stock did in 2013; and return on equity, which measures how effectively a company's managers deploy capital provided by shareholders.
Companies that are based in Pittsburgh as well as those that are based elsewhere but have a sizable presence in the region were considered in determining the list.
Top public companies overall (Click image for larger version)
New York-based Verizon earned the top spot by finishing in the top 10 in five of the seven categories, including being No. 1 in earnings and market cap, No. 2 in revenue and No. 3 in earnings growth.
Verizon was the only company that earned more than No. 2 GlaxoSmithKline. In addition to finishing second based on earnings, the United Kingdom health care product supplier placed first in return on equity and third in market cap.
Royal Philips, the Dutch parent of Respironics, finished in the top 10 in two of the seven categories, including a first place finish in earnings growth. The company reported net income of $1.6 billion for 2013 compared to a $47.8 million loss in 2012.
Two of the companies ranked in the top 10 for overall performance are based in Pittsburgh, the same number that made last year's list. Newcomer The ExOne Co., placed sixth. The North Huntingdon 3-D printing concern went public in February and was the region's best-performing stock last year, climbing 236 percent. ExOne also topped the charts for revenue growth.
PPG Industries finished ninth, moving up one spot from the previous year. The home-grown coatings provider finished in the top in four of the seven categories, including second in earnings growth and return on equity.
Dropping out of the top 10 was Moon titanium producer RTI International Metals, which fell from seventh place last year to 35th this year. Last year, RTI was the top performer in the growth category, a ranking based on revenue and earnings growth, stock performance, and return on equity.
In addition to Glaxo and Royal Philips, two other European companies — both Germany-based — were represented in the Top 10. Siemens, which has operations in Cranberry, Westmoreland and other locations in the region, placed fourth while Bayer, which has its U.S. corporate headquarters in Robinson, ranked seventh.
Figures for the Pittsburgh Post-Gazette's Top 50 lists were derived from company reports, Bloomberg and Post-Gazette staff research.
Revenue, net income and return on equity data are based on the most recent fiscal year reports filed by each company as of the close of business March 21. In most cases, that means the numbers are from the 2013 calendar year.
Stock price changes are for the 2013 calendar year except for companies that went public during 2013. Their performance was measured from the first day they were publicly traded. Market capitalization is based on Dec. 31, 2013, closing stock prices.
For overall rankings of publicly traded companies, an average score was determined for each of the seven performance categories: revenue, revenue change, net income, net income change, stock price change, market capitalization and return on equity.
Those averages were subtracted from individual company scores in each category, with the difference divided by the standard deviation for each of the categories. That resulted in a weighted score for each company in each category. The weighted scores for each company in each category were then added up to determine the overall scores.
An identical procedure was used to determine the growth rankings, using the categories of revenue change, net income change, stock price change and return on equity.
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