Top Financial Services Stocks by Return on Assets Revealed
Financial services companies are ranked by their return on assets (ROA), which measures profitability. ROA is calculated by dividing net income by total assets, but in financial services, this ratio tends to be low due to a large portion of assets being money owed back to depositors and bondholders. Despite this, banks closely watch the ROA as it indicates how well a balance sheet is run.
A high gap between ROA and return on equity (ROE) can indicate that a lender is not pricing risk well or funding itself cheaply. This is significant because even small differences in these figures can make a big difference in profitability. To get the full picture, investors should pair ROA with ROE, net margin, and total assets.
The top financial services stocks by ROA as of FY 2025 are Mastercard Incorporated (MA) at 27.64%, MSCI Inc. (MSCI) at 21.08%, and Visa Inc. (V) at 20.13%. These companies have large assets under management, with Mastercard's total assets reaching $500.11B.