Chicago, IL – April 21, 2022 – Stocks in this week’s article are MP Materials MP, Silvergate Capital SI and OP Bancorp OPBK.
3 Top Profitable Stocks to Invest In Using Net Income Ratio
Investors always seek companies that are profitable. Thus, profitability analysis identifies a profitable company over a loss-making one. Profitability analysis is the best tool to measure the ability of the company to offer sturdy returns to investors even after meeting all operating and non-operating costs.
Here, we have used the concept of accounting ratios to evaluate a company's profitability. There is a variety of profitability ratios, from which we have chosen the most successful and frequently used profitability metric to determine the bottom-line performance of a company.
Net Income Ratio
Net income ratio gives us the exact profitability level of a company. It reflects the percentage of net income to total sales revenues. Using net income ratio, one can determine a company's effectiveness to meet operating and non-operating expenses from revenues. A higher net income ratio usually implies a company's ability to generate ample revenues and successfully manage all business functions.
Here are three of the 11 stocks that qualified the screening:
MP Materials is the producer of rare earth materials principally in the Western Hemisphere. MP Materials owns and operates Mountain Pass primarily. The 12-month net profit margin of MP is 40.7%.
Silvergate Capital is a bank holding company for Silvergate Bank. Silvergate Capital is based in La Jolla, the United States. The 12-month net profit margin of SI is 45.6%.
OP Bancorp provides commercial banking services to retail and institutional customers. OP Bancorp offers commercial lending, home loans, online banking, cash management, certificate of deposits, wire transfers and debit and credit cards services. The 12-month net profit margin of OPBK is nearly 36%.
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