Freescale Semiconductor Moves Up In Market Cap Rank, Passing TECO Energy

Dec 19 2013, 4:11pm CST | by

Freescale Semiconductor Moves Up In Market Cap Rank, Passing TECO Energy
Photo Credit: Forbes Business

In the latest look at stocks ordered by largest market capitalization, Russell 3000 component Freescale Semiconductor Ltd (NYSE: FSL) was identified as having a larger market cap than the smaller end of the S&P 500, for example TECO Energy Inc. (NYSE: TE), according to The Online Investor. Click here to find out the top S&P 500 components ordered by average analyst rating »

Market capitalization is an important data point for investors to keep an eye on, for various reasons. The most basic reason is that it gives a true comparison of the value attributed by the stock market to a given company’s stock. Many beginning investors look at one stock trading at $10 and another trading at $20 and mistakenly think the latter company is worth twice as much — that of course is a completely meaningless comparison without knowing how many shares of each company exist. But comparing market capitalization (factoring in those share counts) creates a true “apples-to-apples” comparison of the value of two stocks. In the case of Freescale Semiconductor Ltd (NYSE: FSL), the market cap is now $3.75B, versus TECO Energy Inc. (NYSE: TE) at $3.67B.
Click here to find out The 20 Largest U.S. Companies By Market Capitalization »

Below is a three month price history chart comparing the stock performance of FSL vs. TE:


Special Offer: Try OLI Premium and get reports on Splits, Buybacks, and M&A daily


Another reason market capitalization is important is where it places a company in terms of its size tier in relation to peers — much like the way a mid-size sedan is typically compared to other mid-size sedans (and not SUV’s). This can have a direct impact on which indices will include the stock, and which mutual funds and ETFs are willing to own the stock. For instance, a mutual fund that is focused solely on Large Cap stocks may for example only be interested in those companies sized $10 billion or larger. Another illustrative example is the S&P MidCap index which essentially takes the S&P 500 index and “tosses out” the biggest 100 companies so as to focus solely on the 400 smaller “up-and-comers” (which in the right environment can outperform their larger rivals). And ETFs that directly follow an index like the S&P 500 will only own the underlying component of that index, selling companies that lose their status as an S&P 500 company, and buying companies when they are added to the index. So a company’s market cap, especially in relation to other companies, carries great importance, and for this reason we at TheOnlineInvestor.com find value to putting together these looks at comparative market capitalization daily.

At the closing bell, FSL is down about 1.1%, while TE is down about 1.1% on the day Thursday.

Source: Forbes Business

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Solaire Shines Light On Philippine Casino Ambitions
The Philippines hopes to be the next big thing in Asian gaming, and its biggest step toward that goal just completed its first year of operation. Solaire Resort and Casino opened in March last year (see page 77; payment...
 
 
Innovators In The UK: Male, Affluent And Long-Term Planners
For decades, innovation policy has been the domain of technocrats and of party–political consensus. Whilst in other fields – such as science – regular surveys help inform public debate and policy-making, there has been...
 
 
Want To Earn $5,000? Stop Working
If you work for Amazon, Jeff Bezos will pay you a bonus of up to $5,000.  Generous, right?  And what do you have to do to get the bonus? Quit your job. It may seem crazy, but it’s true – a recent article in Time notes...
 
 
Your Local Mall, Re-digitized
As part of the never-ending battle for the consumer dollar, General Growth Properties, which owns some 120 high-end malls through the U.S., has recruited RetailMeNot to its side. Under a new agreement the two announced...
 
 
 

Latest from the Network

Apple Now Recycling All Apple Gadgets At Retail Stores
Apple has big things in the works for Earth Day, including their most recent announcement that their retail stores will start recycling all of their gadgets. Apple is calling it “free, responsible recycling” that will...
Read more on Apple Balla
 
Solaire Shines Light On Philippine Casino Ambitions
The Philippines hopes to be the next big thing in Asian gaming, and its biggest step toward that goal just completed its first year of operation. Solaire Resort and Casino opened in March last year (see page 77; payment...
Read more on Business Balla
 
Jay Z and Beyonce buy London home?
Jay Z and Beyonce have bought a $9.3 million home in London. The superstar couple have reportedly splashed out on a luxury detached townhouse in west London, having looked for properties in the trendy Mayfair area and...
Read more on Celebrity Balla
 
Aaron Sorkin Gives More Details On Jobs Movie
The upcoming Steve Jobs movie based on the Walter Isaacson biography is still in the works, with Aaron Sorkin in charge of writing the script. Unfortunately, that is almost all that we currently know about the film.He...
Read more on Apple Balla
 
Innovators In The UK: Male, Affluent And Long-Term Planners
For decades, innovation policy has been the domain of technocrats and of party–political consensus. Whilst in other fields – such as science – regular surveys help inform public debate and policy-making, there has been...
Read more on Business Balla
 
Cameron Diaz planning holiday for Gwyneth Paltrow
Cameron Diaz is organizing a girls' holiday to help Gwyneth Paltrow get over her marriage split. The 'Other Woman' actress is keen to cheer up her friend following the end of her 10-year marriage to Chris Martin and is...
Read more on Celebrity Balla
 
Want To Earn $5,000? Stop Working
If you work for Amazon, Jeff Bezos will pay you a bonus of up to $5,000.  Generous, right?  And what do you have to do to get the bonus? Quit your job. It may seem crazy, but it’s true – a recent article in Time notes...
Read more on Business Balla
 
Your Local Mall, Re-digitized
As part of the never-ending battle for the consumer dollar, General Growth Properties, which owns some 120 high-end malls through the U.S., has recruited RetailMeNot to its side. Under a new agreement the two announced...
Read more on Business Balla
 
Jon Hamm slams Justin Bieber
Jon Hamm has branded Justin Bieber a "sh**head." The 'Mad Men' star thinks the 20-year-old singer - who is facing charges for Driving Under the Influence (DUI), resisting arrest and possessing an invalid driver's...
Read more on Celebrity Balla
 
 
Auto Balla Sexy Balla Sport Balla TV Balla Politics Balla Movie Balla Apple Balla Business Balla Ad Balla Celebrity Balla