Return on equity by industry

92 U.S. industries, highest first · January 2026

Median industry12.5%half are above, half below

Highest50.8%Hospitals/Healthcare Facilities

Lowest-36.4%Rubber & Tires

#	Industry	Return on equity	Net margin	Companies
1	Hospitals/Healthcare Facilities	50.8%	6.3%	31
2	Hotel/Gaming	45.4%	10.4%	63
3	Transportation	36.6%	8.2%	19
4	Software (Entertainment)	36.5%	29.9%	77
5	Semiconductor Equipment	35.8%	21.3%	31
6	Retail (Automotive)	34.4%	3.4%	34
7	Semiconductor	31.4%	30.4%	66
8	Beverage (Soft)	30.9%	13.4%	27
9	Retail (Special Lines)	30.1%	5.2%	94
10	Software (System & Application)	29.6%	25.5%	309
11	Transportation (Railroads)	29.1%	24.7%	4
12	Financial Services (Non-bank & Insurance)	28.8%	22.2%	176
13	Household Products	27.0%	11.7%	110
14	Engineering/Construction	26.1%	5.9%	48
15	Retail (General)	26.1%	5.6%	23
16	Telecom Equipment	25.0%	16.1%	57
17	Drugs (Pharmaceutical)	24.0%	18.5%	228
18	Precious Metals	23.5%	28.6%	56
19	Construction Supplies	22.9%	10.8%	40
20	Telecom Services	19.8%	14.2%	39
21	Environmental & Waste Services	19.7%	8.2%	53
22	Shoe	19.5%	6.3%	11
23	Insurance (General)	19.1%	12.4%	21
24	Insurance (Prop/Cas.)	18.7%	11.1%	57
25	Retail (Distributors)	18.3%	6.0%	62
26	Computer Services	18.3%	4.5%	64
27	Food Wholesalers	18.2%	1.2%	13
28	Business & Consumer Services	18.2%	7.0%	155
29	Oil/Gas Distribution	18.0%	13.4%	23
30	Metals & Mining	17.8%	10.5%	73
31	Brokerage & Investment Banking	17.8%	14.4%	32
32	Machinery	16.4%	10.6%	105
33	Telecom (Wireless)	16.1%	12.2%	12
34	Building Materials	16.0%	7.4%	41
35	Education	15.9%	8.8%	32
36	Investments & Asset Management	15.9%	18.4%	283
37	Aerospace/Defense	15.3%	5.0%	79
38	Information Services	14.9%	6.5%	15
39	Homebuilding	14.2%	9.5%	30
40	Air Transport	14.2%	2.5%	23
41	Publishing & Newspapers	13.8%	8.2%	19
42	Office Equipment & Services	13.2%	4.4%	14
43	Retail (Grocery and Food)	12.9%	1.3%	15
44	Insurance (Life)	12.9%	7.8%	20
45	Bank (Money Center)	12.9%	28.9%	15
46	Electronics (General)	12.6%	6.5%	114
47	Power	12.4%	12.7%	46
48	Packaging & Container	12.3%	4.5%	19
49	Oil/Gas (Production and Exploration)	12.2%	14.6%	142
50	Farming/Agriculture	12.0%	3.9%	35
51	Diversified	11.4%	16.4%	20
52	Healthcare Products	11.3%	9.6%	204
53	Cable TV	11.1%	7.1%	9
54	Real Estate (General/Diversified)	10.8%	23.8%	12
55	Apparel	10.4%	3.9%	35
56	Utility (General)	10.4%	14.2%	14
57	Utility (Water)	10.3%	21.2%	14
58	Shipbuilding & Marine	10.2%	9.5%	8
59	Oil/Gas (Integrated)	10.0%	8.3%	4
60	Healthcare Support Services	9.9%	1.3%	104
61	Banks (Regional)	9.8%	27.5%	568
62	Oilfield Services/Equipment	8.6%	2.3%	97
63	Reinsurance	7.8%	3.9%	1
64	Trucking	7.6%	3.8%	26
65	Paper/Forest Products	7.0%	3.4%	6
66	Healthcare Information and Technology	6.4%	7.4%	115
67	Retail (REITs)	6.4%	23.0%	26
68	Entertainment	6.1%	4.4%	92
69	Real Estate (Development)	5.1%	7.0%	14
70	REITs	5.0%	13.2%	190
71	Food Processing	4.6%	2.8%	78
72	Broadcasting	4.0%	2.1%	24
73	Steel	3.7%	1.9%	19
74	Chemical (Specialty)	3.5%	2.9%	59
75	Real Estate (Operations & Services)	3.3%	1.2%	54
76	Auto & Truck	3.2%	1.3%	33
77	Furn/Home Furnishings	3.1%	1.1%	27
78	Auto Parts	2.2%	0.7%	35
79	Electrical Equipment	1.5%	0.9%	112
80	Beverage (Alcoholic)	0.6%	0.6%	14
81	Restaurant/Dining	0.1%	9.4%	64
82	Computers/Peripherals	-0.2%	17.8%	36
83	Advertising	-1.3%	-0.3%	52
84	Software (Internet)	-1.5%	-0.9%	29
85	Coal & Related Energy	-2.5%	-2.1%	16
86	Drugs (Biotechnology)	-5.7%	-5.0%	496
87	Green & Renewable Energy	-7.4%	-10.8%	15
88	Chemical (Basic)	-8.3%	-3.7%	29
89	Recreation	-12.8%	-4.7%	49
90	Chemical (Diversified)	-15.3%	-5.3%	4
91	Electronics (Consumer & Office)	-28.8%	-9.4%	8
92	Rubber & Tires	-36.4%	-9.5%	3

Source: Aswath Damodaran, NYU Stern, January 2026. Aggregates over U.S. public companies.

Frequently asked questions

What is a good return on equity?

It depends on the industry: the median across these 92 industries is 12.5%, from Rubber & Tires (-36.4%) to Hospitals/Healthcare Facilities (50.8%). Compare a business with its own industry, not with the overall average.

How is the return on equity calculated?

Net income divided by shareholders’ equity: what a company earns on the money its owners have in it. Each figure is an aggregate: the total across every company in the industry, so larger companies weigh more than in a simple average.

Where does the data come from?

Aswath Damodaran’s datasets at NYU Stern, January 2026, covering thousands of U.S. public companies in 94 industries. It is refreshed each January.

Why are 2 industries missing?

The source has no figure for them on this measure.