Brand Value And Stock Value: Soft Drinks, Candy, Soap, And Soup

Investing

Published: February 9, 2010 5:02 am

Last Updated: January 4, 2011 2:48 pm

Large consumer companies spend a great deal of marketing money on creating, preserving, and increasing the image of their brands. If a product has problems, the process does not always work. Toyota (NYSE:TM) has found that out the hard way.

A new study by CoreBrand sets values on the relationships between brand equity and market cap among large American companies and the research points to two conclusions. The first is that iconic brands are critical to the stock market value of the firms that own them. Hershey (NYSE:HSY) ranked first in the CoreBrands study followed by Coca-Cola (NYSE:KO) and Campbell Soup (NYSE:CPB) have spent billions of dollars to build brands which are universally recognized. The second is that weak companies with low market caps may find that their tattered brands make up an especially large part of their fallen share prices. This is probably because their companies are worth so little. Blockbuster (NYSE:BBI) and Harley-Davidson (NYSE:HOG) fall into this category.

The list:

Company	Brand Equity:% of Market Cap Rank	Brand Equity $ Value Rank	Ticker Symbol	Industry
Hershey Company, The	1	103	HSY	Food
Coca-Cola Company, The	2	9	KO	Beverages
Campbell Soup Company	3	85	CPB	Food
Harley-Davidson Inc.	4	127	HOG	Hotel & Entertainment
Pier 1 Imports Inc.	5	278	PIR	Retailers
Kellogg Company	6	63	K	Food
Colgate-Palmolive Company	7	33	CL	Toiletries, Cosmetics
FedEx Corporation	8	52	FDX	Transportation
American Express Company	9	31	AXP	Diversified Financial
Barnes & Noble Inc.	10	236	BKS	Retailers
UPS – United Parcel Service Inc.	11	28	UPS	Transportation
MasterCard Inc.	12	43	MA	Diversified Financial
Mattel Inc.	13	119	MAT	Hotel & Entertainment
Starbucks Corporation	14	76	SBUX	Restaurants
CBS Corporation	15	108	CBS	Hotel & Entertainment
Johnson & Johnson	16	4	JNJ	Medical Supplies & Services
Visa Inc.	17	22	V	Diversified Financial
Del Monte Foods Company	18	182	DLM	Food
St. Jude Medical Inc.	19	90	STJ	Medical Supplies & Services
Wendy’s Arby’s Group Inc.	20	189	WEN	Restaurants
General Mills Inc.	21	58	GIS	Food
Black & Decker Corporation	22	154	BDK	Industrial Equipment
Walt Disney Company, The	23	30	DIS	Hotel & Entertainment
Estée Lauder Companies Inc, The	24	99	EL	Toiletries, Cosmetics
Bed Bath & Beyond Inc.	25	101	BBBY	Retailers
McDonald’s Corporation	26	26	MCD	Restaurants
Blockbuster Inc.	27	347	BBI	Retailers
Kodak – Eastman Kodak Company	28	209	EK	Precision Instruments
Sony Corporation	29	44	SNE	Electronics, Electrical Equip.
Honda Motor Company Ltd.	30	29	HMC	Motor Vehicles
Lowe’s Companies Inc.	31	47	LOW	Retailers
Target Corporation	32	37	TGT	Retailers
IBM – International Business Machines Corporation	33	7	IBM	Computers, Peripherals
Gap Inc., The	34	91	GPS	Retailers
PepsiCo Inc.	35	18	PEP	Beverages
Xerox Corporation	36	121	XRX	Office Equipment
Nike Inc.	37	50	NKE	Apparel, Shoes
American Greetings Corporation	38	258	AM	Packaging
Liz Claiborne Inc.	39	292	LIZ	Apparel, Shoes
Yahoo! Inc.	40	70	YHOO	Internet
La-Z-Boy Inc.	41	285	LZB	Furniture/Home Furn.
Coca-Cola Enterprises	42	106	CCE	Beverages
GE – General Electric Company	43	5	GE	Diversified Industrials
New York Times Company, The	44	202	NYT	Publishing
Whirlpool Corporation	45	138	WHR	Industrial Equipment
Toyota Motor Corporation	46	12	TM	Motor Vehicles
Avon Products Inc.	47	94	AVP	Toiletries, Cosmetics
Sara Lee Corporation	48	114	SLE	Food
Home Depot Inc., The	49	32	HD	Retailers
Wal-Mart Stores Inc.	50	3	WMT	Retailers
Polo Ralph Lauren Corporation	51	116	RL	Apparel, Shoes
Microsoft Corporation	52	2	MSFT	Computer Software
Marriott International Inc.	53	110	MAR	Hotel & Entertainment
Pepsi Bottling	54	117	PBG	Beverages
Goodyear Tire & Rubber Company, The	55	166	GT	Auto Parts
Charles Schwab Corporation, The	56	72	SCHW	Brokerage
J. C. Penney Company Inc.	57	137	JCP	Retailers
Sherwin-Williams Company, The	58	124	SHW	Chemicals
Boeing Company, The	59	36	BA	Aerospace/Defense
Nissan Motor Company Ltd.	60	49	NSANY.PK	Motor Vehicles
Kraft Foods Inc.	61	41	KFT	Food
Procter & Gamble Company, The	62	6	PG	Toiletries, Cosmetics
AT&T Inc.	63	11	T	Telecommunications Services
Ford Motor Company	64	46	F	Motor Vehicles
Apple Inc.	65	8	AAPL	Computers, Peripherals
H&R Block Inc.	66	126	HRB	Diversified Financial
Kohl’s Corporation	67	87	KSS	Retailers
Sunoco Inc.	68	179	SUN	Petroleum Refining
FujiFilm Holdings Corporation	69	86	FUJIY.PK	Electronics, Electrical Equip.
Verizon Communications Inc.	70	23	VZ	Telecommunications Services
Motorola Inc.	71	93	MOT	Telecommunications Equipment.
Dell Inc.	72	66	DELL	Computers, Peripherals
DuPont – E. I. du Pont de Nemours and Company	73	54	DD	Chemicals
Sears Holdings	74	105	SHLD	Retailers
Allstate Corporation, The	75	84	ALL	Insurance
Walgreen Company	76	48	WAG	Pharmacy Serv.
Pitney Bowes Inc.	77	159	PBI	Office Equipment
Hormel Foods Corporation	78	149	HRL	Food
Office Depot Inc.	79	225	ODP	Office Equipment
Staples Inc.	80	82	SPLS	Office Equipment
Exxon Mobil Corporation	81	1	XOM	Petroleum Refining
Philip Morris International Inc.	82	24	PM	Tobacco
Honeywell International Inc.	83	57	HON	Diversified Industrials
H. J. Heinz Company	84	96	HNZ	Food
Loews Corporation	85	92	L	Diversified Financial
CVS Caremark Corporation	86	39	CVS	Pharmacy Serv.
OfficeMax Inc.	87	250	OMX	Office Equipment
Rite Aid Corporation	88	240	RAD	Pharmacy Serv.
Google Inc.	89	10	GOOG	Internet
Tyson Foods Inc.	90	151	TSN	Food
Morgan Stanley	91	51	MS	Brokerage
eBay Inc.	92	61	EBAY	Internet
Bristol-Myers Squibb Company	93	34	BMY	Pharmaceuticals
Canon Inc.	94	35	CAJ	Electronics, Electrical Equip.
Texas Instruments Inc.	95	64	TXN	Semiconductors
Capital One Financial Corporation	96	88	COF	Diversified Financial
Western Union	97	102	WU	Diversified Financial
Tiffany & Company	98	157	TIF	Retailers
Papa John’s International Inc.	99	283	PZZA	Restaurants
Panasonic Corporation	100	55	PC	Electronics, Electrical Equip.

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