In these lean times, when earnings are set to slump in the current Q3 reporting season and could move even lower when companies report their fourth-quarter results in a few weeks, there’s a premium on efficiency. If you can’t find big revenue growth, the sad reality is that corporations need to protect the bottom line by cutting costs.
As a shareholder, nothing is more maddening than owning a stock of a company wasting money on unneeded staffing or spending money on fruitless projects that don’t bring in anything.
One of the easiest metrics of efficiency is a simple calculation that takes the total revenue in the company and divides it by the number of full-time employees. It’s an imperfect measure, but a helpful at figuring out whether a staff is really pulling their weight.
I focused on 10 different industries and dug into the numbers to identify which companies were the leaders. I largely limited myself to the S&P 500, though I had to throw in a few outliers that just had such staggering numbers they had to be mentioned.
Here are 10 of the most efficient stocks on Wall Street: