THE SCOPE OF KNOWLEDGE
How knowledge capital compares at the top companies.
| Industry | Knowl. Capital ($ millions) | Knowl Earnings '99 ($ millions) | Change in Knowl. Earnings '98-'99 ($ millions) | Knowl. Capital / Book Value | Market Value / Book Value | Market Value / Compre- hensive Value | Market Value 8/31/00 ($ millions) |
| AEROSPACE & DEFENSE | |||||||
| Honeywell Int'l | 33,839 | 2,157 | 235 | 3.60 | 3.3 | 0.71 | 30,891 |
| Lockheed Martin | 27,358 | 1,417 | -333 | 4.20 | 1.8 | 0.34 | 11,407 |
| Boeing | 23,447 | 1,590 | 614 | 1.90 | 3.8 | 1.30 | 46,270 |
| Northrop Grumman | 15,901 | 894 | 65 | 4.50 | 1.5 | 0.28 | 5,440 |
| Raytheon | 8,356 | 800 | -595 | 0.80 | 0.9 | 0.50 | 9,457 |
| AIRLINES | |||||||
| Delta Airlines | 10,792 | 709 | -15 | 2.10 | 1.2 | 0.38 | 6,071 |
| AMR | 9,230 | 425 | -174 | 1.40 | 0.7 | .31 | 4,920 |
| Southwest Airlines | 6,668 | 374 | 68 | 2.20 | 3.7 | 1.17 | 11,280 |
| U.S. Airways | 3,420 | 251 | 60 | NM | NM | 0.72 | 2,280 |
| BIOTECH | |||||||
| Amgen | 20,786 | 1,041 | 136 | 6.0 | 22.4 | 3.20 | 77,958 |
| Medimmune | 4,409 | 124 | 36 | 6.1 | 24.3 | 3.44 | 17,651 |
| Biogen | 4,377 | 219 | 44 | 4.4 | 10.2 | 1.90 | 10,229 |
| Chiron | 1,508 | 80 | 17 | 0.8 | 5.4 | 2.95 | 9,863 |
| CHEMICALS | |||||||
| DuPont | 49,085 | 2,543 | 23 | 3.7 | 3.5 | 0.75 | 46,779 |
| Dow Chemical | 29,091 | 1,844 | 748 | 3.2 | 2.0 | 0.47 | 17,761 |
| PPG Industries | 9,948 | 632 | 63 | 3.1 | 2.2 | 0.53 | 7,045 |
| Air Prods & Chems | 6,245 | 379 | 42 | 2.4 | 2.9 | 0.87 | 7,746 |
| Rohm & Haas | 4,656 | 280 | -29 | 1.3 | 1.8 | 0.77 | 6,356 |
| COMPUTER HARDWARE | |||||||
| IBM | 128,186 | 6,597 | 212 | 6.7 | 12.1 | 1.58 | 232,413 |
| Dell Computer | 83,519 | 2,490 | 547 | 12.9 | 17.5 | 1.26 | 113,251 |
| Hewlett - Packard | 49,857 | 2,598 | -340 | 3.4 | 8.2 | 1.85 | 119,385 |
| EMC | 45,958 | 1,569 | 389 | 6.9 | 32.2 | 4.06 | 213,677 |
| Sun Microsystems | 44,560 | 1,849 | 470 | 6.1 | 27.7 | 3.91 | 202,719 |
| COMPUTER SOFTWARE | |||||||
| Microsoft | 188,787 | 8,526 | 2,406 | 4.6 | 8.9 | 1.60 | 368,819 |
| Oracle | 54,304 | 2,314 | 904 | 8.4 | 39.4 | 4.19 | 254,509 |
| Computer Associates | 39,908 | 1,782 | 279 | 5.7 | 2.7 | 0.41 | 18,763 |
| Veritas Software | 16,988 | 176 | 143 | 5.3 | 15.1 | 2.40 | 48,465 |
| Siebel Systems | 6,180 | 176 | 53 | 6.9 | 45.6 | 5.76 | 40,715 |
| ELECTRIC UTILITIES | |||||||
| AES | 28,486 | 691 | 197 | 7.1 | 7.3 | 0.90 | 29,119 |
| Duke Energy | 15,380 | 934 | 211 | 1.6 | 2.9 | 1.10 | 27,531 |
| Southern | 10,351 | 847 | 177 | 1.1 | 2.1 | 0.99 | 19,418 |
| FPL Group | 5,385 | 391 | 67 | 0.9 | 1.7 | 0.85 | 9,488 |
| Dominion Res | 3,358 | 418 | 77 | 0.5 | 1.8 | 1.22 | 12,604 |
| ELECTRICAL | |||||||
| Emerson Elec. | 24,717 | 1,426 | 130 | 3.9 | 4.5 | 0.91 | 28,273 |
| Rockwell Int'l. | 9,431 | 536 | 16 | 3.5 | 2.8 | 0.62 | 7,534 |
| Cooper Industries | 5,950 | 363 | 27 | 3.3 | 1.8 | 0.43 | 3,292 |
| American Pwr Conversion | 4,311 | 199 | 32 | 4.3 | 4.6 | 0.87 | 4,629 |
| FOOD/ BEVERAGES | |||||||
| Coca-Cola | 67,165 | 3,484 | 394 | 7.3 | 14.2 | 1.71 | 130,326 |
| PepsiCo | 50,480 | 2,334 | 67 | 7.5 | 9.1 | 1.08 | 61,593 |
| H.J. Heinz | 18,565 | 1,064 | 85 | 11.4 | 8.1 | 0.65 | 13,223 |
| Unilever | 18,390 | 1,306 | 36 | 3.0 | 4.4 | 1.10 | 27,007 |
| Campbell Soup | 13,022 | 835 | 47 | 95.1 | 81.3 | 0.85 | 11,140 |
| FOREST PRODUCTS | |||||||
| Kimberly- Clark | 25,308 | 1,579 | 201 | 4.5 | 5.6 | 1.02 | 31,514 |
| International Paper | 11,369 | 1,103 | 841 | 0.9 | 1.2 | 0.63 | 15,361 |
| Georgia Pacific | 8,884 | 854 | 369 | 2.2 | 1.1 | 0.35 | 4,568 |
| Weyerhaeuser | 5,762 | 572 | 285 | 0.8 | 1.5 | 0.81 | 10,322 |
| Williamette Industries | 1,044 | 221 | 69 | 0.5 | 1.5 | 1.01 | 3,331 |
| HOME PRODUCTS | |||||||
| Procter & Gamble | 63,450 | 3,882 | 143 | 5.2 | 6.6 | 1.07 | 80,719 |
| Gillette | 26,145 | 1,343 | 124 | 11.0 | 13.3 | 1.11 | 31,590 |
| Colgate- Palmolive | 19,296 | 1,097 | 109 | 11.8 | 17.8 | 1.40 | 29,257 |
| Clorox | 8,151 | 502 | 96 | 4.5 | 4.7 | 0.86 | 8,517 |
| Avon Products | 7,675 | 455 | 24 | NM | NM | 1.27 | 9,304 |
| INDUSTRIAL | |||||||
| Tyco International | 56,184 | 2,970 | 640 | 3.7 | 6.3 | 1.34 | 96,177 |
| United Technologies | 25,856 | 1,564 | 438 | 3.4 | 3.9 | 0.87 | 29,231 |
| Caterpillar | 23,132 | 1,166 | 54 | 4.2 | 2.3 | 0.44 | 12,705 |
| Illinois Tool Works | 15,800 | 957 | 113 | 3.1 | 3.3 | 0.81 | 16,922 |
| Ingersoll- Rand | 14,453 | 819 | 77 | 4.5 | 2.3 | 0.42 | 7,340 |
| MEDIA | |||||||
| Walt Disney | 53,012 | 2,126 | 59 | 2.2 | 3.5 | 1.07 | 82,396 |
| Viacom | 16,759 | 646 | 188 | 0.3 | 2.1 | 1.55 | 102,113 |
| Clear Channel Comm. | 9,536 | 447 | 119 | 0.9 | 2.7 | 1.40 | 27,518 |
| MOTOR VEHICLES | |||||||
| Ford Motor | 90,338 | 6,685 | 1,680 | 3.7 | 2.1 | 0.44 | 50,951 |
| General Motors | 55,026 | 4,257 | 282 | 1.9 | 1.3 | 0.46 | 38,758 |
| Delphi Automotive Sys | 13,413 | 962 | 97 | 3.8 | 2.6 | 0.54 | 9,205 |
| Johnson Controls | 8,573 | 480 | 74 | 3.5 | 1.9 | 0.42 | 4,589 |
| Paccar | 4,159 | 306 | -4 | 1.9 | 1.5 | 0.51 | 3,246 |
| NEWSPAPERS | |||||||
| Gannett | 17,733 | 1,087 | 137 | 3.8 | 3.2 | 0.67 | 14,928 |
| Tribune | 10,388 | 502 | 140 | 1.7 | 1.7 | 0.66 | 10,999 |
| New York Times | 5,619 | 336 | 44 | 4.2 | 4.9 | 0.95 | 6,594 |
| Knight Ridder | 4,921 | 329 | 12 | 3.0 | 2.5 | 0.63 | 4,127 |
| Dow Jones | 3,562 | 210 | 10 | 6.6 | 10.1 | 1.33 | 5,467 |
| OIL | |||||||
| Exxon Mobil | 114,347 | 8,544 | 878 | 1.7 | 4.2 | 1.57 | 284,382 |
| Royal Dutch Petroleum | 27,258 | 3,818 | 585 | 0.8 | 3.7 | 2.10 | 131,204 |
| Chevron | 24,559 | 2,210 | 1,026 | 1.3 | 2.9 | 1.27 | 55,150 |
| Phillips Petroleum | 8,697 | 877 | 198 | 1.7 | 3.1 | 1.14 | 15,756 |
| Unocal | 8,453 | 376 | 42 | 3.4 | 3.3 | 0.74 | 8,106 |
| PHARMACEUTICALS | |||||||
| Pfizer | 128,610 | 5,796 | 3,017 | 8.6 | 18.2 | 1.90 | 273,069 |
| Merck | 109,217 | 6,583 | 902 | 8.6 | 12.6 | 1.32 | 160,694 |
| Johnson & Johnson | 76,446 | 4,336 | 699 | 4.3 | 7.1 | 1.35 | 127,891 |
| Bristol Myers Squibb | 74,002 | 4,254 | 424 | 8.3 | 11.7 | 1.26 | 104,255 |
| Pharmacia | 55,373 | 2,193 | 543 | 4.7 | 6.5 | 1.13 | 75,998 |
| Eli Lilly | 48,163 | 2,641 | 328 | 8.7 | 15.0 | 1.54 | 82,453 |
| RETAIL | |||||||
| Wal-Mart Stores | 81,239 | 4,867 | 1,167 | 2.9 | 7.5 | 1.94 | 211,872 |
| Sears Roebuck | 23,457 | 1,421 | 115 | 3.6 | 1.7 | 0.36 | 10,697 |
| Target | 15,406 | 885 | 128 | 2.6 | 3.5 | 0.98 | 20,999 |
| Costco | 6,006 | 349 | 40 | 1.5 | 3.8 | 1.52 | 15,404 |
| Kohls | 5,504 | 250 | 50 | 2.9 | 9.8 | 2.50 | 18,486 |
| SEMICONDUCTORS | |||||||
| Intel | 208,641 | 9,502 | 2,749 | 5.7 | 13.7 | 2.05 | 502,711 |
| Applied Materials | 44,667 | 1,856 | 1,090 | 7.3 | 11.4 | 1.38 | 70,011 |
| Texas Instruments | 39,390 | 1,860 | 1,012 | 3.1 | 8.7 | 2.11 | 109,810 |
| Broadcam | 5,704 | 137 | 38 | 6.8 | 65.8 | 8.48 | 55,509 |
| SPECIALTY RETAIL | |||||||
| Home Depot | 48,849 | 2,230 | 621 | 3.5 | 8.0 | 1.77 | 111,287 |
| Lowes | 10,962 | 567 | 171 | 2.1 | 3.3 | 1.06 | 17,154 |
| CVS | 10,320 | 512 | 84 | 2.6 | 3.7 | 1.02 | 14,504 |
| Walgreen | 9,243 | 510 | 73 | 2.3 | 8.2 | 2.50 | 33,231 |
| Radioshack | 4,552 | 271 | 60 | 6.3 | 15.2 | 2.08 | 10,962 |
| TELECOM | |||||||
| Verizon Communications | 114,464 | 6,462 | 1,277 | 3.3 | 3.5 | 0.80 | 118,573 |
| SBC Communications | 113,618 | 6,903 | 2,730 | 4.0 | 5.0 | 1.00 | 141,514 |
| AT&T | 81,221 | 4,851 | -222 | 0.7 | 1.1 | 0.62 | 118,288 |
| Bellsouth | 53,812 | 3,568 | 660 | 3.3 | 4.3 | 1.00 | 70,185 |
| Worldcom | 23,277 | 1,772 | 30 | 0.4 | 1.9 | 1.35 | 104,734 |
| TELECOM EQUIPMENT | |||||||
| Cisco Systems | 162,218 | 4,910 | 2,434 | 6.1 | 18.5 | 2.60 | 489,845 |
| Lucent Technologies | 62,824 | 3,220 | 315 | 2.4 | 5.3 | 1.57 | 139,633 |
| Motorola | 26,947 | 1,684 | 1,016 | 1.3 | 3.7 | 1.62 | 78,639 |
| Owens Corning | 24,786 | 867 | 210 | 3.3 | 12.6 | 2.97 | 96,184 |
| Qualcomm | 19,317 | 672 | 192 | 3.3 | 7.7 | 1.78 | 44,610 |
NM = Not meaningful
The various measures of knowledge earnings included in this survey were designed by Prof. Baruch Lev, who retains the exclusive rights to the measures. These knowledge-based measures should not be used in any form without the written permission of Professor Lev. Marc Bothwell, vice president and portfolio manager at Credit Suisse Asset Management, contributed to the development of the measures and performed the required programming and computations. Professor Lev has a patent pending on these measures. For more information, see http://www.baruch-lev.com/.
Reader Comments» Post a comment