Want to invest in the top software companies listed in the U.S.? Below is a list of the top publicly traded companies based in the United States, with market capitalization used as the primary criterion. Other details and figures like price-earnings ratio (P/E), earnings per share (EPS), and dividend yield are also included, as available.
- Microsoft Corp. (MSFT): The Redmond, Washington-based company needs no introduction. It retains the top spot among software companies. Its most popular products are Windows, Office, Server, and related software applications. Currently, Microsoft has a market cap of $1.2T, a P/E ratio of 27.67, EPS of 5.74, and a dividend yield of 2.04.
- Adobe Systems, Inc. (ADBE): NASDAQ-listed Adobe, primarily known for its Acrobat Reader products, has a diversified portfolio of offerings. It has a wide range of software products and services for content management, compatible across a range of systems, products, media, and devices. With a market cap of $162.1B, a high P/E ratio of 50.84, and an EPS of 6.60, Adobe ranks among the top U.S. software companies.
- Oracle Corp. (ORCL): Oracle is a global leader in database solutions and an established provider of enterprise software, middleware, services, and products, along with computer hardware. It has primarily grown based on global acquisitions. Its market cap is reported to be $153.7B, its P/E ratio is 15.07, and EPS is 3.18.
- Salesforce.com, Inc. (CRM): NYSE-listed Salesforce operates in enterprise cloud computing and social enterprise software, services, and solutions. Its entire suite of services is available through browsers, apps, and mobile devices. It has a market cap of $131.1B, a P/E ratio of 164.93, and its EPS is 0.90.
- International Business Machines Corp. (IBM): NYSE-listed IBM has five divisions: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. One of the oldest IT companies in the world, IBM continues to be among the top software companies in the U.S. IBM has a market cap of $95.9B, a P/E ratio of 10.22, and a dividend yield of 6.48.
- Hewlett-Packard Co. (HPQ): NYSE-listed HP is a global provider of software, solutions, services, technologies, and products to individual consumers as well as large enterprises. It has a market cap of $72B, a P/E ratio of 14.7, EPS of 2.62, and institutional ownership of 80%.
- Fiserv (FISV): Listed on the NASDAQ, Fiserv is a software company serving the financial services industry. In 2019, Fiserv acquired payment processor First Data, which JP Morgan estimated would boost its adjusted earnings per share by more than 20 percent in the full first year. It has a market cap of $70.2B, a P/E ratio of 60.48, and an EPS of 1.71.
- Intuit Corp. (INTU): Intuit is a software and solution provider for the business and financial sectors. Its consumer base includes small businesses, finance professionals, institutions, and individuals. It has a market cap of $68.1B, a P/E ratio of 42.27, EPS of 6.18, and a dividend yield of 2.12.
- ServiceNow (NOW): ServiceNow is a cloud computing company that creates digital solutions for enterprise companies to manage their IT, employee, and customer workflows. ServiceNow has a market cap of $54.6B, a P/E ratio of 90.46, and an EPS of 3.18.
- VMware, Inc. (VMW): Based in Palo Alto, VMware provides virtualization, cloud, and related software and services. It was acquired by EMC Corp. in 2004 and listed on the NYSE in 2007. With a market cap of $45.1B and a P/E ratio of 7.15, VMW, although a subsidiary of EMC, remains a top U.S. software company in terms of market cap.
The Bottom Line
Investors looking to invest in large-cap companies can explore the potential of these top U.S. software companies. However, investors should remember to be cautious and selective about the business domain served by the software companies, as the performance of the underlying business sector will reflect on the return of the software companies as well.