Mega Caps: Who's Investing In The Future?
The graph below was produced by Capital Market Labs.
With interest rates at zero funding stock buybacks (which are near all-time highs), it’s easy to forget that there’s something else, longer-term, that companies can do with free-cash-flow: Invest in the future.
The chart below displays all North American companies with market caps greater than $50 billion (x-axis: market cap) versus the amount the firms are spending on research and development per dollar of revenue (y-axis).
While the pharmaceutical/biotechnology sector dominates this measure, take a look at the “non-pharma” names and how different the operational strategies are with regard to investing in the future.
Ophir Gottlieb can be found on Twitter @ophirgottlieb.
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