Top 10 Companies
A student recently asked the following: ‘how do I get a list of the top 10 companies in the pharmaceuticals area?’.
What ‘top 10’ means, or is meant to mean, is a little fuzzy…could this be ordering by turnover (sales), number of employees, earnings per share or other measure? Upon further questioning, the size of the company, represented by Market Capitalization, was deemed acceptable. In addition to this, the relative position of a specified company (Glaxosmithkline: GSK-LN) was queried.
One possible approach is to search for the specified company and see what options then present themselves. By typing the company name or ticker code (GSK-LN) in the search box at the top left of the screen, it is possible to select the appropriate option from those displayed. This gives a Company Overview screen to start.
By selecting the ‘Comparables’ screen, a number of related companies are displayed. To reach this screen, use the drop-down menus at the top of the page:
Company Views – Fundamentals – Comparables
Whilst this gives a list of related entries in the sense that they are pharmaceutical companies, it is not clear if these represent the ‘top 10’. To do so, a measure would have to be targeted, such as Market Capitalization, using the ‘Equity Screener’ feature. This can be reached from:
Screening & Analysis – Companies – Company Screener
By entering ‘Pharmaceuticals’ within the Business Description field and ‘greater than or equal to 5000’ within the Latest Market Cap ($Mil) field [Stock & Earnings Criteria section], then clicking on the ‘Search’ button, this gives 66 results.
Selecting the column title (‘Market Cap’) orders the companies by this field’s values. The Excel icon allows data export.
The data displayed within Excel:
Glaxosmithkline appears at number 6 in the results. A particular concern with this list may relate to how precisely ‘Pharmaceuticals’ matches with companies which are so classified. For example, 3M, which appears at number 5 on the list, makes many varied products, and isn’t primarily thought of as a pharmaceutical company. Another alternative is to try features within other databases – for example, Bloomberg Professional.
The first function which suggests itself is ‘Relative Valuation’ (RV), which would seem to provide a similar role to ‘Comparables’ within Thomson ONE.com. Enter the following on the Command Line:
GSK LN F8/Equity RV
Another potential choice would be to use the Equity Screening function (EQS). This allows companies to be selected according to the Sectors (or sub-sectors) to which they are assigned. There are a number of other categories which can be used to refine a search, if so desired.
By selecting ‘Pharmaceuticals’, then ‘Update’, the number of results are shown. In this case 1,146 companies:
By clicking on ‘Results’, a listing is displayed, sorted by the default data field – Market Cap(italization). The currency is not clear at first sight. However, by hovering the mouse pointer over the column title (Market Cap), a pop up box confirms details: Currency: GBP, representing Great Britain Pounds.
Glaxosmithkline appears at number 10 in this listing. Interestingly, 3M doesn’t appear within the top 21, reflecting the earlier comment on categorisation of companies in different databases.
So, Equity Screening within Bloomberg Professional and Screening & Analysis within Thomson ONE.com databases have provided a listing of companies sorted by Market Capitalization and represent a reasonable solution to what was initially a difficult question to address.
Thomson ONE.com (from Thomson Reuters) and Bloomberg Professional are available to current students and staff of The University of Manchester.
Related posts include:
Company Employee Data Using Different Databases: [24 February 2016], and
Company and Industry Comparisons: [10 July 2015].