Gross margins are the first level of profitability analysis for a company, and it is almost always the most important. Gross margins represent the markup that a company has implemented on its products over its costs, and it’s usually a good representation of overall profitability potential within an industry. That being said, the companies on our list today have displayed a double-digit increase in gross margins over the last two years of operations.
Tesla Motors Inc. (NASDAQ: TSLA) – $237.37
Auto & Truck Manufacturers
Tesla Motors, Inc. designs, develops, manufactures and sells electric vehicles, electric vehicle powertrain components and stationary energy storage systems. The Company also designs, develops, manufactures and sells electric vehicle powertrain components to other automotive manufacturers. Its products include Model S and The Tesla Roadster. The Company uses energy management technologies and manufacturing processes developed for its vehicle powertrain systems and develops stationary energy storage products for use in homes, commercial sites and utilities.
- Market Cap: $30,659,057,328
- Improvement in Gross Margins (2 year, net): 20.3%
- Revenue (2014): $3,198,356,000
- Gross Margin (2014): 27.6%
Priceline Group Inc. (NASDAQ: PCLN) – $1,305.47
Leisure & Recreation
The Priceline Group Inc. is a provider of online travel and travel related reservation and search services. The Company, through its online travel agent (OTA) services, connects consumers wishing to make travel reservations with providers of travel services across the world. The Company’s brands include Booking.com, KAYAK, agoda.com, rentalcars.com and OpenTable. Priceline offers consumers accommodation reservations, including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties, through its Booking.com, priceline.com and agoda.com brands.
- Market Cap: $67,116,233,734
- Improvement in Gross Margins (2 year, net): 12.2%
- Revenue (2014): $8,441,971,000
- Gross Margin (2014): 89.8%
Pilgrims Pride Corp. (NASDAQ: PPC) – $22.06
Food Processing
Pilgrim’s Pride Corporation (Pilgrim’s) is a producer and seller of chicken products with operations in the United States, Mexico, and Puerto Rico. The Company focuses on foodservice industry, principally chain restaurants and food processors, such as Chick-fil-A and Yum! Brands; distributors, such as US Foods and Sysco and retail customers, including grocery store chains, and wholesale clubs, such as Kroger, Wal-Mart, Costco, Publix and Sam’s Club.
- Market Cap: $5,871,481,128
- Improvement in Gross Margins (2 year, net): 10.9%
- Revenue (2014): $8,583,365,000
- Gross Margin (2014): 16.2%
Liberty Broadband Corp. (NASDAQ: LBRDA) – $54.52
Broadcasting
Liberty Broadband Corporation holds ownership interests in Charter Communications, Inc. (Charter) and TruePosition, Inc. (TruePosition), as well as a minority equity interest in Time Warner Cable Inc. (Time Warner Cable). Charter is a cable operator in the United States and provides advanced video, high-speed Internet, and telephone service to residential and business customers.
- Market Cap: $5,582,664,274
- Improvement in Gross Margins (2 year, net): 10.4%
- Revenue (2014): $69,045,000
- Gross Margin (2014): 99.3%
