In this article we discuss the 5 most valuable companies in Europe. If you want to read our detailed analysis of these European companies, go directly to the 10 Most Valuable Companies in Europe.
5. SAP SE (NYSE:SAP)
Market Cap: $170 billion
Revenue: $32.26 billion
SAP SE (NYSE:SAP) is one of the largest software companies in the world with a market cap of over $170 billion.
Based in Waldorf, Germany, SAP is on the forefront of creating the largest business network in the world which brings together different intelligence networks and cloud-based operations. This business network is expected to benefit over 5.5 million organizations in the world. The German enterprise software company has won some influential customers such as Unilever, IKEA, BMW, AstraZeneca, Toshiba, and Nippon Express.
SAP SE (NYSE:SAP) reported a total revenue of $7.65 billion for the first quarter of fiscal 2021 with an EPS of $1.69 representing a 63% year-over-year increase. Its cloud and software segment, which forms 85.5% of the company’s total revenue, achieved a 1% revenue growth.
SAP SE (NYSE:SAP) has been highlighted by an investment management firm called Vulcan Value Partners in its Q1 2021 investor letter. Here is what the fund said:
“SAP SE is a global software provider known for its strength in enterprise resource planning (ERP) systems. The company’s installations are highly customized, deeply entrenched, and extremely difficult to replace. SAP is one of the largest companies in the world that provides a broad range of enterprise solutions through the Cloud and on-premise. Its committed customer base provides a runway for long-term growth and robust free cash flow production. SAP has begun the migration of its customer base to the Cloud. This transition will take time and depress its short-term revenue growth; however, the Cloud improves its long-term prospects and competitive positioning. We believe margins and revenue will increase as the company builds scale in the Cloud. The company lowered guidance for the next couple of years as they make the transition, the market reacted negatively, and the stock price declined. With a stable value and an attractive margin of safety, we are pleased to have an opportunity to own SAP in the portfolio.”
4. AstraZeneca PLC (NASDAQ:AZN)
Market Cap: $176 billion
Revenue: $26.62 billion
AstraZeneca PLC (NASDAQ:AZN) has gained substantial popularity and momentum during the COVID-19 pandemic after succeeding to become one of the first healthcare companies to release and receive approval for a vaccine.
The company’s COVID-19 vaccine has generated over $275 million in sales in the first quarter of 2021, up by 15% on the year. Overall, AstraZeneca PLC (NASDAQ:AZN) has reported total sales worth $7.32 billion in the quarter representing a 15% year-over-year increase. In addition, its core earnings rose to $1.63 per share, showing a jump of approximately 55% on the year.
In addition, AstraZeneca PLC (NASDAQ:AZN) has recently got clearance from the European Commission for the acquisition of Alexion Pharmaceuticals.
Baron Health Care Fund highlighted AstraZeneca PLC (NASDAQ:AZN) in its Q4 2020 investor letter. Here is what the fund stated:
“AstraZeneca PLC is a multinational pharmaceutical company developing drugs across multiple therapeutic areas such as oncology and respiratory diseases. Shares were impacted by news of AstraZeneca’s joint development with Oxford University of a viral-based COVID-19 vaccine. Given a mixed data set due to an unforeseen error in dosing that occurred in the Brazilian market, the vaccine timelines slipped, hurting share performance. Our investment thesis on AstraZeneca is not dependent on COVID-19 but rather its best-in-class large-cap growth profile, and we retain conviction.”
At the end of March, there were 34 hedge funds tracked by Insider Monkey holding $2.66 billion worth of AstraZeneca PLC (NASDAQ:AZN) shares, down from 41 funds and $2.98 billion worth of stock, respectively, a quarter earlier.
3. Novartis AG (NYSE:NVS)
Market Cap: $227 billion
Revenue: $49.90 billion
Another pharmaceutical company that has made the list is Novartis AG (NYSE:NVS) which is based in Basel, Switzerland. This mega-cap company ranks third in the list of the 10 most valuable companies in Europe.
Novartis is involved in the development and manufacturing of healthcare products. Recently, it has developed an antiviral medicine against COVID-19 and is also working on the development of an oral inhibitor that could have long-term efficacy against the coronavirus. Novartis AG (NYSE:NVS) is also looking to enter mRNA technology. The company reported Q1 sales for FY 2021 amounting to $12.4 billion which was a 1% year over year increase. Net income totaled $2.1 billion while the EPS was $0.91 during the quarter.
Wall Street analysts have been bullish on Novartis AG (NYSE:NVS) as the company has already gotten six major drugs approved over the past three years. Currently, it is involved in over a dozen clinical trials.
Oakmark Global Fund highlighted a few stocks in its Q4 2020 investor letter, and Novartis AG is one of them. Here is what the fund stated:
“Novartis is one of Europe’s largest pharmaceutical companies and possesses a highly diversified portfolio of innovative products. Its share price underperformed both the broader market and its pharma peers during 2020, largely due to a few disappointing late-stage trials and the company’s lack of Covid-19-related therapeutics or vaccines. These short-term issues provided us with an attractive entry point to invest in a leading pharmaceutical franchise with compelling economics. We estimate that the market is currently ascribing almost no value to Novartis’ pipeline despite the company’s excellent track record in new drug development. We expect that Novartis will deliver mid-single-digit, top-line growth and expand margins over the next five years as a result of its cost-savings plan. The company possesses one of the most diversified product portfolios in the pharma industry with 15 $1b+ compounds, which reduces its reliance on any single compound.”
2. Roche Holdings AG (OTCMKTS:RHHBY)
Market Cap: $322 billion
Revenue: $65.88 billion
Another pharmaceutical company that has made the list of most valuable companies in Europe is Roche Holdings AG (OTCMKTS:RHHBY), which is based in Switzerland. The company develops pharmaceutical products for the treatment of different illnesses such as cancer, anemia, hepatitis, HIV/AIDs etc.
Roche Holdings AG (OTCMKTS:RHHBY) was established in 1896 and has since established itself as one of the most valuable companies in Europe with a market cap of over $331.763 billion. Recently, Roche was granted the FDA approval for its arthritis drug Actemra for emergency use in the treatment of the coronavirus.
Roche Holdings AG (OTCMKTS:RHHBY) also recently signed a merger agreement with GenMark Diagnostics worth $1.8 billion.
Brown Capital Management highlighted Roche Holdings AG (OTCMKTS:RHHBY) in its Q4 2020 investor letter. Here is what the fund said:
“We eliminated Roche Holdings, a Switzerland-based company that is the largest biotech in the world. While the company is on the cutting edge of drug discovery, particularly in cancer-related treatments, it is facing an uncertain growth path and pressure from generics in its mature drugs. Roche has been a positive contributor to the portfolio since its introduction more than a decade ago, and we now take the opportunity to recycle the capital into higher-growth companies.”
1. Nestle S.A. (OTCMKTS:NSRGY)
Market Cap: $355 billion
Revenue: $92.45 billion
Nestle ADR (OTCMKTS:NSRGY) is a household name and has established itself as the largest food and beverage company in the world. Based in Vevey, Switzerland, the company has a global presence in over 180 countries. With a huge market cap of over $354.87 billion, Nestle ADR (OTCMKTS:NSRGY) is the most valuable companies in Europe. From coffee to baby foods, chocolates, cereals, drinks, and frozen food, Nestle has ownership of almost 2,000 brands across multiple industries.
Recently, Nestle ADR (OTCMKTS:NSRGY) has announced plans to acquire a global nutrition and supplement company called The Bountiful Company in hopes to accelerate its organic growth. Nestle’s experienced a growth in its e-commerce sales by 48.4% in FY 2020.
At the end of April, Moody’s gave Nestle ADR (OTCMKTS:NSRGY) a Aa3 rating which reflects the company’s strong business profile and brand portfolio. This Swiss giant has earned the top spot in the list of the 10 most valuable companies in Europe.
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