Investing

The Twenty Companies Wall St. Can Trust The Most

Douglas A. McIntyre

24/7 Wall St. asked Audit Integrity to screen  companies with market caps of more than $3 billion to create a list of the firms that use the most transparent and conservative accounting programs and have “best of class” corporate governance and management. This data is based on the The Audit Integrity Accounting and Governance Risk rating which is a forensic measure of the clarity and statistical reliability of a corporation’s financial reporting and governance practices. To create this data Audit Integrity applies over 100 accounting and governance metrics to a company’s publicly filed information.

After reviewing this data, 24/7 created a list of The Twenty Companies Wall St. Can Trust The Most. The firms are ranked based on their Accounting and Governance Risk scores.

The list represents companies that have practices which should be emulated by every public company that wishes to serve the needs of its shareholders by presenting accurate financial data and providing conservative management of shareholder’s investments.

The Twenty Companies Wall St. Can Trust The Most:

 

Company Ticker AGR Rating AGR Score
RenaissanceRe Holdings Ltd. RNR Conservative 99
Cintas Corporation CTAS Conservative 98
Enbridge Energy Partners, L.P. EEP Conservative 98
Equinix, Inc. EQIX Conservative 98
American Eagle Outfitters AEO Conservative 96
Bed Bath & Beyond Inc. BBBY Conservative 96
Reinsurance Group of America RGA Conservative 96
ARC Energy Trust AET.UN Conservative 95
Dollar Tree, Inc. DLTR Conservative 94
Ameren Corporation AEE Conservative 92
Manpower Inc. MAN Conservative 91
Mettler-Toledo International Inc. MTD Conservative 91
Jacobs Engineering Group Inc. JEC Conservative 88
NII Holdings, Inc. NIHD Conservative 88
ResMed Inc. RMD Conservative 87
F5 Networks, Inc. FFIV Conservative 86
Hess Corp. HES Conservative 86
XL Capital Ltd. XL Conservative 86
salesforce.com, inc. CRM Conservative 84
Shaw Communications Inc. SJR.B Conservative 84

 

Methodology: The Audit Integrity Accounting and Governance Risk (AGR) rating is a forensic measure of the transparency and reliability of a corporation’s financial reporting and governance practices. The focus of AGR analysis is on identifying the measures most highly associated with fraud, and quantifying those risks for interested stakeholders in relation to company stock price, securities litigation, and major restatement probabilities.

Audit Integrity applies over 100 accounting and governance metrics to a company’s publicly-filed information. The resulting calculation produces the AGR, a percentile score ranging from 0 to 100, with corresponding ratings from Very Aggressive to Conservative.

Companies rated Very Aggressive or Aggressive have proven to be much more likely to face class action litigation and financial restatements, and to suffer severe equity loss. Conversely, those companies that have been consistently rated Conservative have been shown to be the most trustworthy.

AGR significantly improves the predictivity of traditional risk models.

The AGR and its underlying metrics are used by regulators, auditors, insurance companies, investment managers, and corporations, and are often incorporated in reporting by major financial media.

Douglas A. McIntyre