🏆 15 Owner-Operator Quality stocks

Companies with skin in the game outperform the market.

In this article, you’ll find 15 examples of quality stocks with the following characteristics:

• A high percentage of insider ownership

• A CEO that has served the company for at least 10 years

Company 1: Fortinet ($FTNT)

Fortinet provides network security solutions. The Company offers network security appliances, software, and subscription services.

• Profit Margin: 18.2%

• ROIC: 59.9%

• Earnings Yield: 2.6%

• Exp. yearly EPS Growth (3 yr): 23.7%

• Insider ownership: 32.9%

Company 2: Arista Networks ($ANET)

Arista Networks provides cloud networking solutions for data-centers and computer environments.

• Profit Margin: 28.5%

• ROIC: 29.4%

• Earnings Yield: 3.5%

• Exp. yearly EPS Growth (3 yr): 22.9%

• Insider ownership: 15.5%

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Company 3: Copart ($CPRT)

Copart provides vehicle suppliers with services to sell vehicles. The company dominates the market for online car auctions.

• Profit Margin: 31.1%

• ROIC: 23.5%

• Earnings Yield: 3.5%

• Exp. yearly EPS Growth (3 yr): 8.7%

• Insider ownership: 10.1%

Company 4: Garmin ($GRMN)

Garmin provides navigation, communications, and information devices. The company’s key focus is on GPS-enblad products. Think about GPS products for marine, aviation and fitness markets.

• Profit Margin: 21.7%

• ROIC: 16.9%

• Earnings Yield: 5.1%

• Exp. yearly EPS Growth (3 yr): 4.8%

• Insider ownership: 20.0%

Company 5: New Wave Group ($NEWA-B)

New Wave Group produces products for corporate profiling. The company manufactures sportswear and uniforms with business names and logos as well as corporate image products and business gifts.

• Profit Margin: 11.3%

• ROIC: 15.2%

• Earnings Yield: 7.0%

• Exp. yearly EPS Growth (3 yr): 7.9%

• Insider ownership: 6.9%

Company 6: Columbia Sportswear ($COLM)

Columbia Sportswear Company produces active outdoor apparels. The Company offers jackets, rainwear, golf apparels, bottoms, bags, coolers, hats, sunglasses, and footwear products.

• Profit Margin: 11.3%

• ROIC: 15.8%

• Earnings Yield: 5.6%

• Exp. yearly EPS Growth (3 yr): 5.6%

• Insider ownership: 42.7%

Company 7: Hamilton Lane ($HLNE)

Hamilton Lane provides private markets investment solutions. The Company conceives, structures, build outs, manages, and monitors portfolios of private markets funds and direct investments.

• Profit Margin: 39.6%

• ROIC: 22.9%

• Earnings Yield: 4.7%

• Exp. yearly EPS Growth (3 yr): 12.2%

• Insider ownership: 6.1%

Company 8: Enghouse Systms ($ENGH)

Enghouse Systems develops software products for automated mapping, facilities management, and geographic information systems. The Company's CableCad and GeoNet products provide solutions for telecommunications and utility management. 

• Profit Margin: 22.1%

• ROIC: 21.7%

• Earnings Yield: 3.9%

• Exp. yearly EPS Growth (3 yr): 4.6%

• Insider ownership: 22.4%

Company 9: Buckle ($BKE)

The Buckle retails casual apparel for young men and women. The Company offers casual apparel, footwear, and accessories, including denims, tops, sportswear, outerwear, and shoes.

• Profit Margin: 19.7%

• ROIC: 32.5%

• Earnings Yield: 11.4%

• Exp. yearly EPS Growth (3 yr): /

• Insider ownership: 32.5%

Company 10: Napco Security ($NSSC)

Napco Security Technologies manufactures electronic security devices, fire detection products, access control systems, and digital lock equipment. The Company sells its products through a worldwide network of wholesale distributors.

• Profit Margin: 13.7%

• ROIC: 15.8%

• Earnings Yield: 2.6%

• Exp. yearly EPS Growth (3 yr): 64.4%

• Insider ownership: 17.3%

Company 11: Reply ($REY)

Reply specializes in the design and implementation of solutions based on new communication channels and digital media. The Company's services include consultancy, system integration, application management, and business process outsourcing. 

• Profit Margin: 10.2%

• ROIC: 15.5%

• Earnings Yield: 4.0%

• Exp. yearly EPS Growth (3 yr): 13.5%

• Insider ownership: 39.7%

Company 12: Livechat ($LVC)

LiveChat is a software company that provides communication tools, offering live chat rooms and greetings for business.

• Profit Margin: 55.9%

• ROIC: 86.7%

• Earnings Yield: 5.3%

• Exp. yearly EPS Growth (3 yr): 12.8%

• Insider ownership: 33.9%

Company 13: Cerillion ($CER.L)

Cerillion designs and develops customer management systems offering network asset management and billing operations.

• Profit Margin: 28.6%

• ROIC: 30.9%

• Earnings Yield: 3.3%

• Exp. yearly EPS Growth (3 yr): 16.0%

• Insider ownership: 31.7%

Company 14: Ubiquiti ($UI)

Ubiquiti provides wireless networking products and solutions. The Company offers radios, antennas, and management tools that have been designed to deliver carrier class performance for wireless networking and other applications in the unlicensed radio frequency.

• Profit Margin: 22.4%

• ROIC: 59.6%

• Earnings Yield: 2.3%

• Exp. yearly EPS Growth (3 yr): 22.9%

• Insider ownership: 93.2%

Company 15: National Beverage ($FIZZ)

National Beverage is a holding company manufacturing a full line of beverage products. The Company's products include multi-flavored & cola soft drinks, juice & juice products, flavored carbonated & spring water products, and specialty items.

• Profit Margin: 13.9%

• ROIC: 33.4%

• Earnings Yield: 3.3%

• Exp. yearly EPS Growth (3 yr): 9.7%

• Insider ownership: 74.9%

Overview

Here’s an overview of all companies mentioned:

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About the author

Compounding Quality is a professional investor which manages a worldwide equity fund with more than $150 million in Assets Under Management. We have read over 500 investment books and spend more than 50 hours per week researching stocks.