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 which 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%
Stone Energy (NYSE: SGY)
66.2%
77.4%
Vaalco Energy (NYSE: EGY)
69.1%
66.0%
Zix (Nasdaq: ZIXI) Continued...
Rich Duprey is a writer specializing in the stock market.
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