Business

Brazilian companies stand out in the ranking of those with the best Total Shareholder Return

In the Boston Consulting Group global ranking, Magazine Luiza appears in first in the Retail category; Banco do Brasil, Bradesco and Itaú also stood out in the Banking category

Magazine Luiza Brazil
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The Boston Consulting Group (BCG) released the “The 2021 Value Creators Ranking”, a ranking with the companies that most generate Total Shareholder Return (TSR) in the world. The ranking is divided by industry and includes some Brazilian companies, such as Magazine Luiza, the Brazilian retail giant, which stood out in the first position in the global ranking in the Retail category as the company in the sector with the best shares.

In the same category, another Brazilian retail giant: B2W, the parent company of brands such as Americanas and Submarino, appears in ninth. Amazon ranked tenth.

Image: The 2021 Value Creators Ranking/Boston Consulting Group

While Magazine Luiza delivered TSR of 226%, B2W generated a TSR of 38%. Amazon‘s TSR was 37%. The 2021 Value Creators rankings detailed in the interactive above are based on data as of December 31, 2020, and reflect average annual TSR over the five years from 2016 through 2020; 2400 companies were evaluated.

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Other Brazilian companies appear in “The 2021 Value Creators Ranking”. In the Banking category, three large banks appear in the top ten: Banco do Brasil, in fourth, with a 26.6% TSR; Bradesco, in fifth, with a 24.7% TSR and Itaú, in sixth, with a 24.2% TSR.

Image: The 2021 Value Creators Ranking/Boston Consulting Group

According to the Boston Consulting Group, despite the global crisis caused by the COVID-19 pandemic, the trajectory of value creation for companies has not changed: investors continue to want companies that prioritize investments in the technologies development and professionals; a good services and products portfolio and a strong sustainability strategy are also essential.

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BCG’s ranking has been done for 23 years based on total shareholder return, a metric that, according to the consultancy, reflects the final result for investors. The full BCG ranking and analysis can be accessed here.

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