The 300 largest listed companies in the US play in a different league than the same group in Europe. This applies both to size and to profitability. The average operating profit margin (Ebit level) of 13.2% is a quarter above the European benchmark of 10.4%. The advantage of the US corporations is mainly a result of the mix of industries: in Europe, the ten most profitable companies come from the automotive (VW, Daimler (DAI 68.41 1.17%)), energy and raw materials, foodstuffs (Nestlé (NESN 83.55 0.3%)) and one from the pharmaceutical sector (Roche (ROG 248.9 -0.28%)). In the US, on the other hand, five of the ten most profitable corporations come from IT and telecommunications and two from the pharma sector. Top Rated Apple (AAPL 154.48 0.44%) booked in the first half-year of 2017, added almost as much EBIT as the top five European top earners (VW, Royal Dutch Shell (RDSB 2328 -0.58%), Daimler, Roche, Anheuser-Busch InBev) at € 34.6 billion. In the IT sector, the US providers also generate significantly higher margins than their European counterparts, the same applies to pharmaceuticals / biotech and most industries. Apple, Google (GOOGL 972.08 0.48%) and Microsoft (MSFT 74.26 -0.47%) are highly profitable and drive digitisation forward - in this change the more traditional European companies are playing the second fiddle.
Source - also graphical presentation
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