Between shareholder-friendly stocks expected to
underperform the market, and
highfliers that pay little heedto their owners'
interests, you'll find top-flight companies that also treat
their shareholders with respect.
Institutional Shareholder Services -- the big name in
corporate proxies -- measures how well a company performs in
as many as 63 categories covering four broad areas. Moreover,
each company is scored relative to its market index and its
industry group. ISS assigns these stocks a rating that it
calls its corporate governance quotient, or CGQ.
Some evidence supports the notion that companies with
weaker governance have higher risk, decreased profitability,
and lower valuations. We'll be looking at stocks that sport
above-average CGQ scores, either in their index group or
among industry peers, and whichÂ
Motley Fool CAPSinvestors have marked to outperform the
market.
Company
CAPS Rating (out of 5)
Index CGQ Ranking*
Industry CGQ Ranking*
MedcoHealth Solutions (NYSE: MHS)
****
79.4%
96.6%
Monsanto (NYSE: MON)
****
72.5%
96.6%
Stone Energy (NYSE: SGY)
****
66.2%
77.4%
Vaalco Energy (NYSE: EGY)
****
69.1%
66.0%
Zix (Nasdaq: ZIXI) Continued... |