If we ask you to name the major companies in the US, we believe you can come up with thousands of them. But do you know which are the most valuable ones? That is the question that we shall attempt to answer in this article.
Our ranking is based on market capitalization, which refers to the value of a firm by multiplying the stock price by the number of shares outstanding.
Even though most companies recorded a decline in their value due to Covid-19, the recovery has been impressive.
Without further ado, let’s look at the top 10 largest publicly traded companies by market cap as of June 2021.
Top 10 Largest Publicly Traded Companies in the US
In this section, we shall discuss the corporations that made it to our list of the largest publicly traded corporations in the US. These are the latest figures on leading corporate institutions based on market cap.
1. Apple Inc. (AAPL) $2.108 Trillion
Apple was the first company to cross the trillion-dollar mark, and as of June 2021, it had recorded a market cap rate of $2.108 trillion.
Founded in 1977 by Steve Jobs and Steve Wozniak, this firm was initially known as Apple Computer Company and had its headquarters in Cupertino, California. It has established itself as a reliable producer of high-quality hardware and software, with some of its famous products being iPhones, iPods, and Macs.
2. Microsoft (MSFT) $1.938 Trillion
Next up is a company that doesn’t need any introduction and is a producer of software products and licenses. However, the two products that have helped put the company on the map are Microsoft Office and Windows OS.
It was founded in 1975 by Bill Gates and Paul Allen, who were students at Harvard then. The company’s original location was Albuquerque, New Mexico but then shifted to Redmond, Washington, in 1986.
Even with the effects of Covid-19, its stocks have performed quite well, with the company recording a market cap of $1.938 trillion.
3. Amazon (AMZN) $1.691 Trillion
This is probably the biggest e-commerce company in the world, and most of the online markets globally have borrowed their cue from it. The corporation was a brainchild of Jeff Bezos, and he established it in 1994, with its headquarters being in Seattle.
Some of the reasons for the company’s popularity include the sale of high-quality products at affordable rates, a wide variety of items, and reliable delivery.
Amazon has a market capitalization of $1.691 trillion, employees approximately 650,000, and an annual turnover of about $232 billion.
4. Alphabet Inc. (GOOGL) $1.656 Trillion
In case you don’t know, Google is the parent company of Alphabet Inc., and it (Google) also owns other companies such as YouTube, Android, and Chrome.
Larry Page and Sergey Brin, who founded Google in 1998, are the same individuals heading Alphabet. For this reason, it is no surprise that it has made it to our list of top ten most valuable corporations in the US.
Like most other companies, the firm’s value took a hit in 2020 due to Covid-19 but recovered steadily to record a cap rate of $1.656 trillion.
5. Facebook (FB) $942.77 Billion
Who doesn’t know Facebook? Well, this is a social network established in 2004 by Mark Zuckerberg and has grown to register over 2 billion visitors in a day. Its current headquarters are in California, and its value of $942.77 billion should tell you how popular the service is.
It may not be at the top of the list, but the company definitely leads in profitability, whereby it churns out annual profits exceeding $22 billion.
6. Berkshire Hathaway (BRK.A) $654.46 Billion
The next firm gives us a break from the technology companies that have dominated the top spots on our list. Whereas the company is immersed in different sectors of the economy such as railway transport, food, non-food items, and insurance, its most notable aspect is the owner, Warren Buffet.
He is one of the most popular American investors and entrepreneurs globally.
The company is headquartered in Omaha, Nebraska, and some of its affiliate companies include BNSF, McLane Company, GEICO, Berkshire Hathaway Primary Group, and General Re (reinsurance) among others.
It has a market cap of $654.46 billion, while the stocks experienced a dip due to the 2020 pandemic.
7. Tesla, Inc. (TSLA) $582.32 Billion
Even though most of Tesla’s success is attributed to Elon Musk, he was not the founder and only became the board chairman in 2004. The founders were Mark Tarpenning and Martin Eberhard, and they did so in 2003 with the dream of developing a car manufacturer that doubles up as a tech company.
Currently, Tesla is the leading electric car manufacturer globally and is headquartered in Palo Alto, California. Some of its notable vehicle models include sedan, roadster, and crossover.
As of June 2021, this company registered a market cap of $582.32 billion and has the most accelerated growth of all the companies on our list.
8. Visa (V) $444.4 Billion
The next firm on our list is a multinational financial services entity that facilitates EFTs around the world. The company was founded in 1958 and has developed to become the second-largest payment system in the world and is supported in over 200 countries worldwide.
Its headquarters are in San Francisco, California, and has four centers that process its transfers: Colorado, London, Singapore, and Virginia.
Visa has a market capitalization of $444.4 billion and has made a remarkable recovery from the slump that it experienced around March 2020.
9. JPMorgan Chase (JPM) $422.6 Billion
Headquartered in Manhattan, New York, this is the largest commercial bank in the USA, and its history dates back to 1799. Besides retail and commercial banking, the company also deals with private banking, investment banking, asset management, and private wealth management.
The entity has a market capitalization rate of $422.6 billion and is the 6th largest corporation in the world in terms of total assets.
10. Johnson and Johnson (JNJ) $422 Billion
Closing down our list is a multinational that produces pharmaceuticals, medical devices, and first aid supplies, and consumer packaged products. It was founded in 1886 by three brothers, namely James Wood, Edward Mead, and Robert Wood Johnson, and was a company that only produced plasters and bandages.
A few years down the line, the company started producing baby powder.
Johnson & Johnson has a market capitalization rate of $422 billion and has over 250 affiliate companies in over 60 countries.
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About Market Cap in the Valuation of Large Companies
One of the most effective ways of evaluating the viability of investing in a particular company is through market capitalization alongside annual income and total assets. This method will help you determine the size of a company which is an important factor in determining several vital aspects that investors are interested in, such as risk.
Keep in mind that market capitalization does not always reflect the price that the owner is willing to sell the company.
At times, the company may end up being over or undervalued. So, if you want to get its real value, make a point of considering its activity from a fundamental point of view.
The Recovery Process
Most, if not all, sectors of the economy experienced near-market lows from March 31st, 2020, due to the Covid-19 pandemic. However, all the sectors recorded increases in their market capitalization in 2021, with some companies going as far as outperforming their respective industry index.
For instance, the materials and industrials sectors outperformed their respective industry indexes similar to the technology companies such as Apple.
On the other hand, the health care, utilities, and energy sectors were not such impressive performers, whereby the health care and utility sectors performed poorer than their industry indexes.
We attribute the steady improvement in the different sectors to fiscal and central bank policies to help economies recover from the 2020 economic downturn. We hope that as nations worldwide continue reopening, the value of the largest companies will continue climbing until they attain their full potential.
A Summary of the Performances of the Top 10 Largest Companies by Market Cap (USA)
- In terms of market capitalization, the technology sector maintains the top spot with a rate of $10.5 trillion. The top tech firms on our list recorded a 71% increase compared to what their value was in 2020.
- Then, all the sectors in the top 10 list recorded significant rises in market capitalization in the year leading up to March 2021, with the rates ranging between 25% to 75%.
- The only industry that the Industrials and Basic materials sectors did not outperform was the technology sector.
- Health Care, utilities, and energy were the worst-performing sectors on our list of top 10 largest companies by market capitalization.
From our list, you can tell that the largest companies in the US based on market cap are well-known to us and are some of the most successful ones around. Some are relatively new, while there are those that were established in the 1800s.
Keep in mind that the rankings are bound to change over time due to various variables, although some names always seem to be stuck in the top 5.
We hope you have picked up something new from our article.