In this article, we discuss 15 most valuable Nordic companies in the world.
The Nordic region, consisting of Denmark, Sweden, Finland, Norway, and Iceland, is known for high living standards driven by progressive economic and social policies. These nations often top the world rankings in terms of national performance, which includes economic conditions, education, civil liberties, human development, and quality of life. Functioning as mixed-market economic systems, the Nordic countries have developed as welfare states based on equitable distribution of income and social cohesion. These claims are backed by their rankings in World Happiness Report, Human Development Index, and Global Peace Index.
A major reason for this robust economic and social model is the contributions being made by the companies originating from the Nordic region. 2020 saw economies all over the world being hit by the pandemic rather harshly. The Nordic countries were no exception. However, backed by strong companies, the countries managed to perform better in contrast to other regions. As per the Nordic Statistic database, the Nordic region saw a decline in GDP of only 2.2% as compared to the 6% decline in the European Union. Not only this but the region is also said to be leading the way to economic recovery post the series of lockdowns due to COVID-19. Sweden and Norway are predicted to achieve an economic expansion of 3.5% or more in the following year. There are multiple companies that are at the forefront of the dynamic growth not only in the Nordic region but also across the world.
Many of the Nordic companies that have scaled their operations in the recent past are adopting a similar growth trajectory as followed by companies like Tesla Inc (NASDAQ: TSLA), Alphabet Inc. (NASDAQ: GOOG), Microsoft Corporation (NASDAQ: MSFT), and Merck & Co., Inc. (NYSE: MRK).
In this article, we will look at the 15 most valuable Nordic companies in the world.
Image by Sergei Tokmakov www.thecorporateattorneys.com from Pixabay
Our Methodology
We will be looking at market capitalization, financial ratios, along with growth prospects to rank the companies from lowest to highest. The market capitalization values have been sourced from Yahoo Finance.
The data is reflective of the market as of September 2021.
With this context in mind, let’s begin listing the 15 most valuable Nordic companies in the world.
15 Most Valuable Nordic Companies in the World
15. Telia Company AB (publ) (OTC:TLSNY)
Market Capitalization: $16.895B
Country of Origin: Sweden
Telia is a multinational mobile network operator and a telecommunications company. It is the largest Baltic and Nordic broadband, fixed voice, and mobile operator in regards to the customer base and revenue. The company is the owner of MTV and TV4 Group in Finland and Sweden, respectively, as well as C More Entertainment. Telia Company AB (publ) (OTCMKTS: TLSNY) also operates an international IP network. While headquartered in Stockholm, Telia (OTCMKTS: TLSNY) has expanded its operations to Sweden, Norway, Denmark, Latvia, Estonia, Finland, and Lithuania. Telia (OTCMKTS: TLSNY) claims that its mission is to connect individuals, businesses, and communities through mobiles and fixed communication solutions. In 2017, the company settled with the U.S Department of Justice regarding a case filed against it for its historical transactions in Uzbekistan. As of 2021, the company seems to have made a successful reputational recovery.
14. Svenska Handelsbanken AB (publ) (OTC:SVNLY)
Market Capitalization: $22.429B
Country of Origin: Sweden
Svenska Handelsbanken (OTCMKTS: SVNLY) is a consumer banking company that also provides notary, securities, investment banking, and insurance services. Founded in 1871 in Stockholm, the group has expanded its operations to Norway, Finland, Netherlands, Germany, Spain, China, France, Luxembourg, Poland, United States, United Kingdom, and Denmark, with 500 offices functioning in Britain alone. Although the bank suffered heavy losses in the recession in 1871, the First World War, and the mid-1990s, it was able to recuperate by cutting down expenses. Committed to gender equity, the group employs 41% female managers in its offices. In 2020, Svenska Handelsbanken (OTCMKTS: SVNLY) published its first sustainability report, which focused on reducing the destruction to the environment. Svenska Handelsbanken (OTCMKTS: SVNLY) has also become a member of the Net-Zero Banking Alliance to act upon the climate change policies.
Similar to companies like Tesla Inc (NASDAQ: TSLA), Alphabet Inc. (NASDAQ: GOOG), Microsoft Corporation (NASDAQ: MSFT), and Merck & Co., Inc. (NYSE: MRK), Svenska Handelsbanken is also placing greater emphasis on sustainable growth.
13. Swedbank AB (publ) (OTC:SWDBY)
Market Capitalization: $22.54B
Country of Origin: Sweden
Swedbank ranks 13th on our list of the 15 most valuable Nordic companies in the world. Rooted in the Swedish culture of savings, Swedbank AB (publ) (OTCMKTS: SWDBY) is a banking group offering a wide range of financial management and retail banking services. With around 4,000,000 private customers, 269,000 corporate customers, and 15,963 employees, the bank holds 154 offices across Sweden and 80 in Estonia, Latvia, and Lithuania. Swedbank AB (OTCMKTS: SWDBY) has been working to reduce money laundering, terrorist financing and enhance social and environmental sustainability. Dedicated to its mission of uplifting the marginalized, Swedbank AB (OTCMKTS: SWDBY) focuses on providing jobs to migrants, reducing bullying, and teaching young people financial management. A patron of the University of Latvia, the group funds fellowships, literary festivals, scholarships, and other student activities. In the 2000s, the bank recuperated from the global financial crisis by opting for a government bailout. In 2019, it was singled out in an investigation for money-laundering operations.
12. Fortum Oyj (OTC:FOJCY)
Market Capitalization: $22.963B
Country of Origin: Finland
With a focus on power generation, Fortum is a public-funded company that trumps many Finnish businesses in terms of revenue. The company’s services also include gas supply and nuclear power generation. Famous for its motto, ‘For a cleaner world,’ Fortum Oyj (OTCMKTS: FOJCY) strives to provide its consumers with carbon-free electricity for the preservation of the environment. In 2021, it extended its expert advice to the Russian government for reducing Russia’s carbon footprint. In the same year, Fortum Oyj (OTCMKTS: FOJCY) also allied with Nasdaq to expand ‘Puro.earth,’ a startup focused on carbon removal, and extended its operations to nuclear disassembling. However, Fortum Oyj (OTCMKTS: FOJCY) was exposed for greenwashing by the civil sector and critiqued for acquiring Uniper, a project that earned it a spot amongst the worst greenhouse gas emitters in the European Union, in 2019. Since then, the company has reformed certain policies and operations.
11. Telenor ASA (OTC:TELNY)
Market Capitalization: $23.72B
Country of Origin: Norway
Telenor is a Norwegian multinational company involved in telecommunication, TV, and broadband operations. Currently headquartered near Oslo, the company is mostly state-owned. Telenor ASA (OTCMKTS: TELNY) runs its operations all across the world with its main customer base located in Asia and Scandinavia. Telenor (OTCMKTS: TELNY) offers access to the internet, cable TV, and mobile fixed telephone services.
Just like Tesla Inc (NASDAQ: TSLA), Alphabet Inc. (NASDAQ: GOOG), Microsoft Corporation (NASDAQ: MSFT), and Merck & Co., Inc. (NYSE: MRK), Telenor ASA (OTCMKTS: TELNY) has a well-established global presence.
10. Nokia Corporation (NYSE:NOK)
Market Capitalization: $31.19B
Country of Origin: Finland
Nokia ranks 10th on our list of the most valuable Nordic companies in the world. Nokia Corporation (NYSE: NOK) is a Finnish consumer electronics, information technology, and telecommunications multinational company established in 1865. Nokia Corporation (NYSE: NOK) currently is running its operations in around a hundred and fifty countries. Nokia Corporation (NYSE: NOK) has been divided into two business groups. One is Nokia Network which provides services such as the provision of fixed and wireless networks, cloud networks, and technical support to service providers and operators. The other division is Nokia Technologies which licenses technology and focuses on power management.
9. H&M Hennes & Mauritz AB (publ) (OTC:HNNMY)
Market Capitalization: $33.98B
Country of Origin: Sweden
The Swedish multinational company is the second-largest clothing retail company in the world known for its fast fashion. H&M Hennes & Mauritz AB (OTCMKTS: HNNMY) manufactures clothing for men, women, children, and teens. It currently operates in 74 countries and has more than 5000 stores running worldwide. The company also employs around 126,000 people in full-time positions. Due to the increase in consumer awareness regarding the negative impact of fast fashion on the environment, H&M (OTCMKTS: HNNMY) has made attempts towards greenwashing its brand and has announced plans to make their company more environmental-friendly in the future.
Akin to companies like Tesla Inc (NASDAQ: TSLA), Alphabet Inc. (NASDAQ: GOOG), Microsoft Corporation (NASDAQ: MSFT), and Merck & Co., Inc. (NYSE: MRK), H&M (OTCMKTS: HNNMY) has expanded its operations extensively.
8. Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC)
Market Capitalization: $38.664B
Country of Origin: Sweden
Ericsson ranks 8th on our list of the most valuable Nordic companies in the world. Ericsson (NASDAQ: ERIC) is a multinational Swedish telecommunications and network company headquartered in Stockholm. The company is known as the inventor of BlueTooth technology. Ericsson’s (NASDAQ: ERIC) current operations include software, infrastructure, and information and communications technology. It offers its clients services such as internet protocol, 5G, 4G, 3G equipment, and optical transport systems. The company is currently the employer of 100,000 people and operates in more than 108 countries worldwide. In 2019, Ericsson (NASDAQ: ERIC) was hit by the U.S Department of Justice with a civil and criminal investigation for foreign corruption, for which it agreed to pay US$1.2 billion. As of 2021, the company has expressed its determination to mark its territory in China despite geopolitical forces against them.
7. Spotify Technology S.A. (NYSE:SPOT)
Market Capitalization: $43.053 B
Country of Origin: Sweden
SPOT ranks 7th among the 15 most valuable Nordic companies in the world. Spotify is a Swedish media service provider and an audio streaming platform. It is the largest music streaming service in the world and boasts a monthly active user base of 365 million as of June 2021. Spotify Technology S.A. (NYSE: SPOT) offers digitally copyrighted podcasts and music. It is a freemium service and has a range of 70 million songs. The company operates in 178 countries. Spotify Technology S.A. (NYSE: SPOT) makes its revenue through premium subscriptions and advertisements and pays its content creators and artists a portion of this revenue as an incentive to use its platform. In today’s digital age, Spotify Technology S.A. (NYSE: SPOT) has become the prime source for music consumption, far surpassing physical sources such as CDs, tapes, and records.
Guardian Fund, an investment management firm, published its fourth-quarter 2021 investor letter and mentioned Spotify Technology S.A. (NYSE: SPOT). Here‘s what the fund said:
“One of the most important things is to recognize when a business reaches an inflection point, which is when operational leverage starts to kick in and the growth in profitability catches up with revenue growth. The inflection point is often the big promise, and a lot of our effort is spent trying to understand if scale is likely to translate into significant profitability.
For example, regarding Spotify, we believe margins should inflect sooner than later because Spotify’s total monthly active user base continues to grow from about 390 million, which combined with more engagement and better machine learning drives significant ad-supported revenues (USD 323 million in 2021 Q3, small yet growing 75%). It’s also worth noting that because Spotify’s growth is only around the 20-30% range, the valuation is dramatically lower than that of for example Snowflake. The lower price provides a substantial margin of safety because it gives an asymmetric return profile.”
6. A.P. Møller – Mærsk A/S (OTC:AMKBY)
Market Capitalization: $50.716B
Country of Origin: Denmark
Maersk is a Danish shipping company offering freight transportation services along with port operation facilities and supply chain management. Since 1996, the company has maintained its position as one of the largest vessel operators and container shipping lines in the world. Based in Copenhagen, Maersk (OTCMKTS: AMKBY) has offices and subsidiaries in over 130 countries. It currently employs more than 830,000 people worldwide. Following the trend of companies becoming more environmental-friendly, Maersk (OTCMKTS: AMKBY) announced its commitment to becoming carbon-neutral in 2019. Maersk (OTCMKTS: AMKBY) also plans on introducing its first-ever carbon-neutral vessel by 2023.
5. Nordea Bank Abp (OTC:NRDBY)
Market Capitalization: $51.99B
Country of Origin: Sweden
Nordea is a financial services group based in Finland. The company currently serves around 9.3 million people. Nordea Bank Abp (OTCMKTS: NRDBY) has four business areas – business banking, personal banking, asset and wealth management, and large corporates. Nordea (OTCMKTS: NRDBY) has subsidiaries in countries like Helsinki, Denmark, Finland, Latvia, Lithuania, Russia, and Malta, to name a few. Despite the problems caused by the COVID-19 pandemic, Nordea (OTCMKTS: NRDBY) has raised its expected growth of the year by 3.5%.
4. AB Volvo (publ) (OTC:VLVLY)
Market Capitalization: $55.835 B
Country of Origin: Sweden
Volvo, the Swedish luxury automobile company, secures the fourth position on our list of the 15 most valuable Nordic companies in the world. AB Volvo (publ) (OTCMKTS: VLVLY) manufactures station wagons, sedans, hatchbacks, and other types of vehicles. Volvo’s (OTCMKTS: VLVLY) cars are hailed as solidly built and safe. Due to the pandemic, Volvo (OTCMKTS: VLVLY) has cautioned towards a global chip shortage in the near future.
3. Atlas Copco AB (OTC:ATLKY)
Market Capitalization: $74.184B
Country of Origin: Sweden
Atlas Copco secures the third position on our list of the 15 most valuable Nordic companies in the world. Atlas Copco AB (OTCMKTS: ATLKY) is one of the leading manufacturers of industrial equipment and assembly systems in the world. Atlas Copco (OTCMKTS: ATLKY) aims to provide sustainable solutions to a wide range of industrial problems, including the production of pneumatic and demolition tools. The company recorded a 0.94% year-on-year revenue growth due to increased order volumes for industrial equipment in the second quarter of 2021.
2. Equinor ASA (NYSE:EQNR)
Market Capitalization: $84.37B
Country of Origin: Norway
On the second spot on our list of the 15 most valuable Nordic companies in the world is Equinor ASA (NYSE: EQNR). Ranked as the 169th largest company in the world by the Forbes Global 2000 in 2020, Equinor (NYSE: EQNR) is a state-owned multinational energy company with its operations mainly focusing on petroleum and additional investments in the renewable energy market. Equinor (NYSE: EQNR) currently employs over 20,000 people with operations in more than 30 countries worldwide.
Massif Capital, an investment management firm, published its second-quarter 2021 investor letter and mentioned Equinor ASA (NYSE: EQNR). Here‘s what the fund said:
“We currently have two oil-related positions in our portfolio and believe the oil opportunity set is ripe. As one might expect, both positions, (including Equinor: EQNR) performed well during the second quarter, given the steady march higher that oil has made in recent months. We maintain a positive outlook for both companies, although, importantly, our posture is not predicated on an expectation for continued oil price appreciation. This is not because of our inability to imagine scenarios where that does occur, but more out of an abundance of caution for what is a highly volatile commodity that at current price levels should be more than sufficient to generate ample free cash flow for any investable oil firm.
In the future, we expect both firms in the portfolio to generate significant free cash flow and expect EQNR to reinvest that free cash flow into a combination of offshore oil and wind opportunities with high rates of return. The path forward for AOI is more complicated and does warrant a few comments.”
1. Novo Nordisk A/S (NYSE:NVO)
Market Capitalization: $221.864B
Country of Origin: Denmark
The Danish multinational company lands the first position on our list of the 15 most valuable Nordic companies in the world. As a leading pharmaceutical company, Novo Nordisk (NYSE: NVO) has seen tremendous growth in the last year, with its market cap rising from $163.07B in 2020 to $221.86B in 2021. Novo Nordisk (NYSE: NVO) is working towards creating novel treatments for chronic diseases affecting millions around the world. Novo Nordisk (NYSE: NVO) is responsible for the production of 50% of the world’s insulin supply and conducts clinical trials in over 50 countries.
LRT Capital Management, an investment management firm, published its third-quarter 2021 investor letter and mentioned Novo Nordisk (NYSE: NVO). Here‘s what the fund said:
“Novo Nordisk is the global leader in insulin, which is, sadly, a growing business as more and more people around the world suffer from diabetes. millions of people need daily injections of insulin to stay alive54, a number that, unfortunately, is likely to continue to grow by millions more in the coming decade. It may seem at first glance that insulin should be a commoditized business, after all, it was discovered and synthesized over a hundred years ago, but nothing could be further from the truth. There are many types of insulin and Novo Nordisk has spent billions on R&D over the years to develop new products. On February 11th, the company reported favorable results from a phase-3 trial of Semaglutide, a drug that is currently used for Type 2 diabetes treatment. The study evaluated the use of Semaglutide for weight loss treatment in non-diabetic patients and found a significant impact on weight loss for patients receiving Semaglutide vs. the placebo control group. If Semaglutide is approved for weight loss treatment, we expect it will be meaningfully accretive to the company’s bottom line.
The company’s proprietary product line supports returns on invested capital of over 40%, and while sales growth is relatively slow (+6% annualized CAGR over the past decade), the company’s shares trade at a reasonable valuation of only 22x forward earnings. For a company with an extremely predictable business, high returns on capital, and an easily forecastable future, we believe this to be highly attractive.”
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Disclosure: None. 15 Most Valuable Nordic Companies in the World is originally published on Insider Monkey.
