In the latest look at the underlying components of the S&P
500 ordered by largest market capitalization, Dollar Tree, Inc.
(Symbol: DLTR) has taken over the #345 spot from C.R. Bard, Inc.
(Symbol: BCR), according to
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 Dollar Tree, Inc. (Symbol: DLTR), the market cap is now
$10.86 billion, versus C.R. Bard, Inc. (Symbol: BCR) at $10.84
Below is a chart of Dollar Tree, Inc. versus C.R. Bard, Inc.
plotting their respective size rank within the S&P 500 over
time (DLTR plotted in blue; BCR plotted in green):
Below is a three month price history chart comparing the stock
performance of DLTR vs. BCR:
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 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). So a company's market cap,
especially in relation to other companies, carries great
importance, and for this reason we at
find value to putting together these rankings daily.
According to the ETF Finder at ETF Channel, DLTR and BCR
collectively make up 1.99% of the Guggenheim Defensive Equity ETF (
) which is lower by about 0.5% on the day Wednesday.
At the closing bell, DLTR is down about 0.2%, while BCR is down
about 0.9% on the day Wednesday.
The 20 Largest U.S. Companies By Market