Top 15 Technology Companies With the Strongest Businesses
Marvin's rules picked 15 Technology companies with the highest Business Quality scores, from NVIDIA to Broadridge. Each is ranked against others in its own industry, and each has its own strengths and gaps.
Marvin looked at Technology companies above a minimum size and sorted them by Business Quality, a score of how strong a company's operations look against others in the same industry. This page lists the 15 that came out on top, including chipmakers, software firms, hardware makers and IT service providers.
A high score does not mean every number is excellent. Some companies here grow fast, while others grow slowly but keep very high margins. A few have missing figures, which we flag in the individual notes.
Scores compare each company with its own industry today. They are not a forecast or a recommendation. Use the list as a starting point for your own research.
The list
How Marvin ranked these stocks
Marvin included Technology companies above a minimum size, with a limit on how many come from any single industry. The list is ordered by Business Quality score, highest first. Scores run from zero to one hundred and are relative to each company's own industry, so a high score means a company looks strong compared with its direct peers, not against all companies. The figures in the notes come from each company's latest data as of the date shown.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The Technology sector, highest Business Quality score first; at most 4 per industry.
The stocks, one by one
NVIDIA Corporation NVDA
NVIDIA keeps a lot of each sales dollar: operating margin is 65.2% and free cash flow margin is 41.9%. Revenue grew 65.5% last fiscal year and debt-to-equity is just 0.17. Caution: that growth covers only one fiscal year, and rates this high are unusual.
AppLovin Corporation APP
AppLovin shows a very high operating margin of 77.4% and gross margin of 88.5%, with revenue growth of 70.0%. Caution: free cash flow margin is not available, and debt-to-equity of 1.11 means it uses more borrowing than several peers on this list.
VeriSign, Inc. VRSN
VeriSign has an operating margin of 67.9% and a free cash flow margin of 62.4%, which points to a very profitable business. Growth is modest at 6.4%. Caution: its opportunity score is only 61, and return on equity and debt figures are missing.
Dave Inc. DAVE
Dave grew revenue 59.7% last fiscal year and turned 50.7% of sales into free cash flow. Return on equity is 107.1%. Caution: operating margin, gross margin and debt figures are not available, so the picture of its profitability is incomplete.
Sandisk Corporation SNDK
Sandisk grew revenue 175.3% and earned an operating margin of 61.2%, with almost no debt (debt-to-equity 0.01). Free cash flow margin is 56.8%. Caution: growth this large reflects a single fiscal year and is not a steady pattern.
Amphenol Corporation APH
Amphenol grew revenue 51.7% with an operating margin of 27.0%, solid but lower than the chip and software names above it. Free cash flow margin is 16.2%. Caution: debt-to-equity of 1.11 is higher than many peers on this list.
Taiwan Semiconductor Manufacturing Company Limited TSM
Taiwan Semiconductor has a Business Quality score of 97 and an opportunity score of 96, putting it near the top of the Semiconductors industry. Caution: no growth, margin, return or debt figures are available for it here, so we cannot show what drives the score.
Jack Henry & Associates, Inc. JKHY
Jack Henry grew revenue a modest 7.1%, but turned 27.3% of sales into free cash flow and carries little debt (debt-to-equity 0.04). Caution: its opportunity score of 67 is much lower than its quality score of 96.
Microsoft Corporation MSFT
Microsoft combines revenue growth of 17.8% with an operating margin of 46.8% and low debt (debt-to-equity 0.29). That is strong growth for its scale. Caution: free cash flow margin of 20.2% is well below its operating margin.
Apple Inc. AAPL
Apple earns an operating margin of 33.2% and a free cash flow margin of 29.3%, with return on equity of 119.9%. Caution: revenue growth was only 6.4%, and its overall score of 90 is held back by a lower opportunity score of 65.
JFrog Ltd. FROG
JFrog has a high gross margin of 77.9%, free cash flow margin of 28.3% and revenue growth of 24.1%. Caution: operating margin is -11.5% and return on equity is -4.6%, so it is not profitable on those measures, and debt data is missing.
Cisco Systems, Inc. CSCO
Cisco shows steady rather than fast growth, with revenue up 11.8%, an operating margin of 24.3% and return on equity of 26.4%. Debt-to-equity is 0.49. Caution: its margins are lower than the top semiconductor and software names on this list.
ASML Holding N.V. ASML
ASML has an operating margin of 34.6%, free cash flow margin of 33.9% and return on equity of 49.0%, with low debt (debt-to-equity 0.22). Caution: revenue growth of 15.6% is more moderate than for NVIDIA or Sandisk.
Palo Alto Networks, Inc. PANW
Palo Alto Networks grew revenue 24.5% and converts 35.8% of sales into free cash flow. Caution: operating margin is only 6.1%, return on equity is 1.1%, and its overall score of 80 is the lowest here, with an opportunity score of 42.
Broadridge Financial Solutions, Inc. BR
Broadridge grew revenue 8.5% with an operating margin of 17.4% and return on equity of 39.6%. Caution: it has the thinnest gross margin on this list at 31.8%, and debt-to-equity of 1.24 means it carries more debt than most companies here.
Common questions
What does the Business Quality score measure?
It is a Marvin score from zero to one hundred showing how strong a company's business looks compared with other companies in the same industry. It reflects the kind of figures shown in each note, such as margins, growth and returns.
Why are some figures missing for certain companies?
Not every company reports every measure in a form Marvin can use. When a figure is unavailable, we leave it out rather than guess, and note it as a caution so you know the picture is incomplete.
Does a high score mean a stock is a good purchase?
No. The scores describe how a company's business compares with its industry peers today. They do not say anything about a stock's price or its future returns, so treat them as one input to your own research.
Keep reading
- Top 15 Technology Stocks Right Now, Ranked by Marvin Scores
- Top 25 Quality Stocks Trading Well Below Their Highs
- Top 15 Technology Stocks by Marvin Opportunity Score
- Top 11 Software Stocks by Marvin Scores
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.