High ROE Stocks: Elite Capital Allocators

166 Elite Capital Allocators Ranked by ROE.

Anish DasCurated by Anish Das
Refreshed Jun 20, 2026

Identify elite capital allocators earning 20%+ return on shareholder equity — the quality threshold famously cited by Warren Buffett. ROIC ≥ 15% confirms genuine capital efficiency, not leverage tricks.

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Screen VitalsLive Metrics
Companies
166
Avg ROE
34.30%
Avg ROIC
37.21%
Avg 1Y Return
31.11%
Elite Profitability
ROE ≥ 20%
Capital Efficiency
ROIC ≥ 15%
Debt Discipline
D/E ≤ 1
Proven Scale
Market Cap ≥ $1B
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Compare Top 3 Open Screener
TickerCompanyROEROICD/EGross MFCF Margin
Ubiquiti Inc.186.5%81.4%0.443.4%24.4%
Sezzle Inc.103.3%52.7%0.885.4%46.3%
TG Therapeutics, Inc.102.8%16.4%0.483.7%-4.1%
NVIDIA Corporation101.5%81.8%0.171.1%44.8%
Manhattan Associates, Inc.71.7%236.8%0.455.7%34.6%
Medpace Holdings, Inc.70.2%154.9%0.530.1%26.9%
IDEXX Laboratories, Inc.66.2%42.5%0.761.8%24.5%
Blue Bird Corporation61.6%102.6%0.420.5%10.4%
Ameriprise Financial, Inc.60.5%31.3%0.950.4%15.3%
Red Rock Resorts, Inc.58.9%23.4%0.252.6%14.4%
Lam Research Corporation58.2%55.7%0.548.7%29.4%
Pegasystems Inc.57.3%27.2%0.175.9%28.1%
Adobe Inc.55.4%51.4%0.688.6%41.4%
TransMedics Group, Inc.54.2%18.8%1.059.9%22.1%
Visa Inc.52.1%29.2%0.780.4%53.9%
Williams-Sonoma, Inc.51.5%44.3%0.746.2%13.5%
Carvana Co.50.4%34.3%0.220.6%4.4%
The Buckle, Inc.49.4%37.6%0.949%15.9%
Comfort Systems USA, Inc.49.2%53%0.324.1%11.3%
NCR Atleos Corporation48.6%23.4%0.624.4%5.5%
Phoenix Education Partners, Inc45.5%104.9%0.356.7%6.4%
Ulta Beauty, Inc.43.6%28.1%0.839.1%8.6%
W.W. Grainger, Inc.43.5%32.1%0.839.1%7.4%
Netflix, Inc.42.8%29.8%0.548.5%20.9%
Southern Copper Corporation42.6%38.6%0.756.7%25.5%
Vertiv Holdings Co41.8%28.1%0.934.4%18.5%
InterDigital, Inc.41.5%40.9%0.580.3%63.4%
Deckers Outdoor Corporation40.9%100%0.256.1%20.1%
Cintas Corporation40.3%25.8%0.650%17%
Moelis & Company40.2%24.9%0.499.2%35.6%
UI logoUI
Ubiquiti Inc.
186.5%ROE
ROIC81.4%
D/E0.4
Gross M43.4%
FCF Margin24.4%
SEZL logoSEZL
Sezzle Inc.
103.3%ROE
ROIC52.7%
D/E0.8
Gross M85.4%
FCF Margin46.3%
TGTX logoTGTX
TG Therapeutics, Inc.
102.8%ROE
ROIC16.4%
D/E0.4
Gross M83.7%
FCF Margin-4.1%
NVDA logoNVDA
NVIDIA Corporation
101.5%ROE
ROIC81.8%
D/E0.1
Gross M71.1%
FCF Margin44.8%
MANH logoMANH
Manhattan Associates, Inc.
71.7%ROE
ROIC236.8%
D/E0.4
Gross M55.7%
FCF Margin34.6%
MEDP logoMEDP
Medpace Holdings, Inc.
70.2%ROE
ROIC154.9%
D/E0.5
Gross M30.1%
FCF Margin26.9%
IDXX logoIDXX
IDEXX Laboratories, Inc.
66.2%ROE
ROIC42.5%
D/E0.7
Gross M61.8%
FCF Margin24.5%
BLBD logoBLBD
Blue Bird Corporation
61.6%ROE
ROIC102.6%
D/E0.4
Gross M20.5%
FCF Margin10.4%
AMP logoAMP
Ameriprise Financial, Inc.
60.5%ROE
ROIC31.3%
D/E0.9
Gross M50.4%
FCF Margin15.3%
RRR logoRRR
Red Rock Resorts, Inc.
58.9%ROE
ROIC23.4%
D/E0.2
Gross M52.6%
FCF Margin14.4%
LRCX logoLRCX
Lam Research Corporation
58.2%ROE
ROIC55.7%
D/E0.5
Gross M48.7%
FCF Margin29.4%
PEGA logoPEGA
Pegasystems Inc.
57.3%ROE
ROIC27.2%
D/E0.1
Gross M75.9%
FCF Margin28.1%
ADBE logoADBE
Adobe Inc.
55.4%ROE
ROIC51.4%
D/E0.6
Gross M88.6%
FCF Margin41.4%
TMDX logoTMDX
TransMedics Group, Inc.
54.2%ROE
ROIC18.8%
D/E1.0
Gross M59.9%
FCF Margin22.1%
V logoV
Visa Inc.
52.1%ROE
ROIC29.2%
D/E0.7
Gross M80.4%
FCF Margin53.9%
WSM logoWSM
Williams-Sonoma, Inc.
51.5%ROE
ROIC44.3%
D/E0.7
Gross M46.2%
FCF Margin13.5%
CVNA logoCVNA
Carvana Co.
50.4%ROE
ROIC34.3%
D/E0.2
Gross M20.6%
FCF Margin4.4%
BKE logoBKE
The Buckle, Inc.
49.4%ROE
ROIC37.6%
D/E0.9
Gross M49%
FCF Margin15.9%
FIX logoFIX
Comfort Systems USA, Inc.
49.2%ROE
ROIC53%
D/E0.3
Gross M24.1%
FCF Margin11.3%
NATL logoNATL
NCR Atleos Corporation
48.6%ROE
ROIC23.4%
D/E0.6
Gross M24.4%
FCF Margin5.5%
PXED logoPXED
Phoenix Education Partners, Inc
45.5%ROE
ROIC104.9%
D/E0.3
Gross M56.7%
FCF Margin6.4%
ULTA logoULTA
Ulta Beauty, Inc.
43.6%ROE
ROIC28.1%
D/E0.8
Gross M39.1%
FCF Margin8.6%
GWW logoGWW
W.W. Grainger, Inc.
43.5%ROE
ROIC32.1%
D/E0.8
Gross M39.1%
FCF Margin7.4%
NFLX logoNFLX
Netflix, Inc.
42.8%ROE
ROIC29.8%
D/E0.5
Gross M48.5%
FCF Margin20.9%
SCCO logoSCCO
Southern Copper Corporation
42.6%ROE
ROIC38.6%
D/E0.7
Gross M56.7%
FCF Margin25.5%
VRT logoVRT
Vertiv Holdings Co
41.8%ROE
ROIC28.1%
D/E0.9
Gross M34.4%
FCF Margin18.5%
IDCC logoIDCC
InterDigital, Inc.
41.5%ROE
ROIC40.9%
D/E0.5
Gross M80.3%
FCF Margin63.4%
DECK logoDECK
Deckers Outdoor Corporation
40.9%ROE
ROIC100%
D/E0.2
Gross M56.1%
FCF Margin20.1%
CTAS logoCTAS
Cintas Corporation
40.3%ROE
ROIC25.8%
D/E0.6
Gross M50%
FCF Margin17%
MC logoMC
Moelis & Company
40.2%ROE
ROIC24.9%
D/E0.4
Gross M99.2%
FCF Margin35.6%
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Learn more about High ROE Stocks: Elite Capital Allocators

How We Build This List

  • ROE ≥ 20%Elite capital efficiency — exceeds S&P 500 median (14–16%) and signals structural competitive advantage.
  • ROIC ≥ 15%Validates ROE isn't debt-inflated — measures returns on all capital, not just equity.
  • Debt/Equity ≤ 1Caps leverage to ensure high ROE reflects operations, not financial engineering.
  • Market Cap ≥ $1BProven scale — ROE at this size reflects real competitive advantage.
  • ROE ≤ 200%Filters out statistical artifacts from near-zero equity bases.
  • Excludes ADRsUS GAAP companies only for consistent ROE measurement.

What Makes a Stock a High ROE Stocks List constituent?

This screen identifies companies generating a Return on Equity (ROE) of at least 20% with a market cap over $1 billion. By filtering for these thresholds, we isolate high-quality compounders like Microsoft, which maintained ROE above 20% for most of the 2010s, signaling a durable competitive advantage.

ROE 20+
Quality Filter
ROE >= 20%
CAP 1B+
Size Filter
Market Cap > $1B
DEBT < 1
Risk Filter
Debt/Equity <= 1
1

Filter for Capital Efficiency

We set ROE at 20% to capture elite firms. For example, Apple's massive share buybacks pushed its ROE above 100% in 2022, proving how capital allocation drives returns.

2

Validate Operational Quality

We require a Debt/Equity ratio under 1.0 to ensure ROE isn't just financial engineering, unlike General Electric in 2017, which struggled with high leverage.

3

Ensure Proven Scale

A $1B market cap floor filters out micro-cap volatility. This ensures the 20% ROE is sustainable, similar to how Visa maintained high margins during the 2020 pandemic.

Performance Dynamics: When Does This Strategy Outperform?

Strategy performance behaves differently based on market conditions. Let's analyze when this strategy outperforms and when it lags:

When High ROE Leads

  • During the 2022 bear market, high-quality stocks with strong ROE outperformed the broader S&P 500 by roughly 8%.
  • In the 2008 financial crisis, companies with low debt and high ROE recovered 20% faster than highly leveraged peers.
  • During periods of rising inflation, such as 2021, firms with pricing power and high ROE maintained margins better than the average index stock.

When High ROE Trails

  • During the 2020 post-COVID recovery, speculative low-ROE growth stocks surged 50% while quality stocks lagged.
  • In the 2013 'Taper Tantrum,' investors rotated into high-beta, low-quality stocks, causing high-ROE stalwarts to underperform by 5%.
  • During the 2009 market bottom, deep-value stocks with poor ROE often rallied 40% as they were previously oversold.

How to Use the Screener Results Table

To build a resilient portfolio, do not buy stocks on simple statistics alone. Use the key columns in our table to audit the durability, safety, and returns of each stock:

Return on Equity Percentage

Measures profit per dollar of equity. A 20% ROE at a firm like Costco shows efficient use of shareholder capital compared to a 5% ROE at a struggling retailer.

Debt to Equity Ratio

Shows leverage risk. A ratio of 0.5 at a company like Microsoft is safer than a 3.0 ratio seen at AT&T in 2023.

Market Cap Currency

Indicates scale. A $100B cap like NVIDIA provides more stability than a $500M cap firm prone to liquidity shocks.

Net Margin Percentage

Reflects pricing power. A 30% margin at Adobe shows a stronger moat than a 2% margin at a commodity producer like Ford.

Risk Factors & Warning Signs to Track

The Financial Engineering Trap

High ROE can be artificially inflated by excessive share buybacks funded by debt. Bed Bath & Beyond used this strategy for years before its 2023 bankruptcy, masking declining core operations with a shrinking equity base.

What are High ROE Stocks?

Isolates capital-efficient businesses generating massive returns on shareholder equity. It pairs 20%+ ROE with high ROIC and conservative leverage to find elite models.

  • Return on Equity (ROE) between 20% and 200%
  • Return on Invested Capital (ROIC) ≥ 15%
  • Debt/Equity Ratio ≤ 1
  • Market Capitalization ≥ $1 Billion

Why Invest in High ROE Stocks?

Compounding Power

Compounds shareholder book value at superior rates

Moat Indicator

Serves as a mathematical indicator of deep moats

No Leverage Illusion

Avoids financial engineering and high debt risk

Buffett's Standard

Targets Buffett's primary metric for wonderful businesses

Frequently Asked Questions

Is 20% ROE always good?
Not if it's driven by debt. In 2018, many firms used tax cuts to buy back stock, inflating ROE while their actual business growth remained flat.
Why exclude ADRs?
Accounting standards vary globally. US GAAP provides the most consistent ROE calculation for comparing firms like Alphabet vs. international peers.
Does this screen work for banks?
Banks naturally carry high debt. This screen is better suited for tech or consumer staples like Procter & Gamble.
How often should I rebalance?
Quarterly is standard. High-ROE leaders like Meta can see their ROE fluctuate with R&D spending cycles.
What if a stock has a 300% ROE?
This is often a red flag. It usually means the company has almost no equity left, like a firm near insolvency.
Can I use this for small caps?
We set a $1B floor because small-cap ROE is often volatile. A $50M company's ROE can swing 50% based on one contract.
Does high ROE guarantee growth?
No. Coca-Cola has high ROE but low growth. It signals efficiency, not necessarily a 20% revenue increase.
What is the best sector for this?
Software and consumer brands. Companies like Adobe or Nike historically maintain high ROE due to intangible assets.

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