In this article, we will look into the 20 most valuable Latin American companies. If you want to skip our detailed analysis, you can go directly to the 5 Most Valuable Latin American Companies.
Economic Outlook of Latin America
In 2023, Latin America witnessed sluggish growth due to high inflation, restricted monetary policies, and an overall weak climate globally. However, despite the subdued economic performance, Brazil and Mexico exhibited better economic prospects than expected. Their growth can be attributed to strong agriculture and high private consumption in Brazil, and increased investments and spending in Mexico. According to the World Bank Economic Prospects, Latin America and the Caribbean are expected to grow at a steady rate of 2.3% in 2024 and reach 2.5% in 2025. The countries in the region exhibit varied prospects for growth. For instance, economic growth is expected to slightly slow down to 1.5% in Brazil in 2024. In 2025, it is expected to bounce back to 2.2%, with declining inflation and interest rates. On the other hand, Mexico is forecasted to moderate at 2.6% in 2024. Mexico’s growth is expected to slow down in 2025 and reach 2.1%, driven by decreasing inflation and low external demand.
Argentina is expected to rebound in 2024. It is expected to grow at a steady rate of 2.7% and reach 3.2% in 2025. The economy in Colombia is forecasted to climb to 1.8% in 2024 from 1.2% in 2023. Other countries in the region including Chile and Peru are also expected to witness steady growth in 2024. Peru hit by a contraction in 2023, is expected to grow 3.4% in 2024, driven by robust mining production in the country. Central American economies are envisioned to stay resilient in 2024. The region is expected to grow at 3.7% in 2024 and reach 3.8% in 2025, driven by a rise in remittances.
Foreign Investments in the Region
Latin America is witnessing a surge in foreign investments from diverse regions, especially in sectors including renewables, manufacturing, and critical minerals, as reported by S&P Market Intelligence. This goes beyond the major automotive-driven investments in Mexico. The region has been gaining broader appeal from investors all over the world in the mining, renewables, and hydrocarbon industries.
The region is also attracting investments in infrastructure and trade. On January 18, Reuters reported that the influence of China on Latin American countries is rapidly growing. This is evident through the Belt and Road Initiative and also the construction of the Chanacy mega port in Peru. The port aims at connecting South America and Asia to foster trade across the regions. The US and Europe must increase their investments in the region to counter the influence of China in Latin America. The increasing need for financing and investments in Latin America along with its rich resources make it a battleground for global powers.
Key Players in the Latin American Market
Some of the major companies in the Latin American market include Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR-A), Vale S.A. (NYSE:VALE), and Nu Holdings Ltd. (NYSE:NU).
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR-A) is a leader in petroleum industry. On February 7, the company announced that it had partnered with Senai Institute for Renewable Energy to build a pilot plant. The plant aims to study the use of solar energy derived from hydrogen. The new plant will expand an existing solar energy plant and utilize it for electricity generation to power the electrolysis unit. The project is worth R$90 million and is expected to last three years. This joint venture will contribute to Petróleo Brasileiro S.A. – Petrobras’s (NYSE:PBR-A) efforts to promote hydrogen-based energy solutions.
Vale S.A. (NYSE:VALE) is a leading mining company in Latin America. On February 8, the company announced that it had joined forces with Hydnum Steel for the development of low-carbon solutions for the mining industry. The partnership aims to construct an iron ore briquette plant in Spain alongside Hydnum’s green steel project. This collaboration aligns with Vale S.A.’s (NYSE:VALE) aim to cut down scope 3 emissions by 15% by 2035 and reach net zero by 2050.
Nu Holdings Ltd. (NYSE:NU) is a major digital financial services company in Latin America. On January 29, UBS analyst Thiago Batista maintained a buy rating on Nu Holdings Ltd. (NYSE:NU) and raised his target price to $11.50 from $10.50. Over the past 3 months, 5 Wall Street analysts have given a buy rating on Nu Holdings Ltd. (NYSE:NU). The stock has an average price forecast of $10.14 and a high target of $12. Over the past 6 months, the stock has surged nearly 25%, as of February 9.
Now, let’s have a look at the 20 most valuable Latin American companies.
20 Most Valuable Latin American Companies
Methodology
To compile our list of the 20 most valuable Latin American companies, we screened for companies in Latin America using Finviz and Yahoo Finance stock screeners. We also looked for similar publications and exhausted our research to look for notable private companies operating in the Latin American market. Since our research yielded no significant private company, with higher annual revenue than the market cap of the companies on our list, we have ranked companies in ascending order of their market cap, as of February 9, 2024.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
20 Most Valuable Latin American Companies
20. Banco de Chile (NYSE:BCH)
Market Cap as of February 9: $11.30 billion
Banco de Chile (NYSE:BCH) is ranked among the most valuable companies in Latin America. Headquartered in Santiago, the company is a leading financial services company in Chile. As of February 9, Banco de Chile (NYSE:BCH) has a market cap of $11.30 billion.
19. Sociedad Química y Minera de Chile S.A. (NYSE:SQM)
Market Cap as of February 9: $11.57 billion
Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is a global producer and marketeer of specialty fertilizers, including sodium nitrate, potassium nitrate, and potassium sulfate. As of February 9, Sociedad Química y Minera de Chile S.A. (NYSE:SQM) has a market cap of $11.57 billion.
18. CEMEX, S.A.B. de C.V. (NYSE:CX)
Market Cap as of February 9: $11.59 billion
CEMEX, S.A.B. de C.V. (NYSE:CX) is a wholesale building material company in Mexico. Its offerings include cement, aggregate, and other building materials. CEMEX, S.A.B. de C.V. (NYSE:CX) reports a market cap of $11.59 billion, as of February 9.
17. Credicorp Ltd. (NYSE:BAP)
Market Cap as of February 9: $12.27 billion
Credicorp Ltd. (NYSE:BAP) is a financial services company in Peru. The company operates across various business segments including corporate finance, capital markets, asset management, and wealth management. Credicorp Ltd. (NYSE:BAP) reports a market cap of $12.27 billion, as of February 9.
16. XP Inc. (NASDAQ:XP)
Market Cap as of February 9: $13.49 billion
XP Inc. (NASDAQ:XP) is ranked among the most valuable companies in Latin America. Headquartered in Sao Paulo, it is a financial services company providing services including investments and financial markets services. As of February 9, XP Inc. (NASDAQ:XP) has a market cap of $13.49 billion.
15. Suzano S.A. (NYSE:SUZ)
Market Cap as of February 9: $13.86 billion
Suzano S.A. (NYSE:SUZ) is the largest paper producer in Latin America. As of February 9, Suzano S.A. (NYSE:SUZ) has a market cap of $13.86 billion. It is ranked 15th on our list.
14. Telefônica Brasil S.A. (NYSE:VIV)
Market Cap as of February 9: $17.84 billion
Telefônica Brasil S.A. (NYSE:VIV) is a Brazilian subsidiary of a Spanish telecommunication company, Telefônica. As of February 9, Telefônica Brasil S.A. (NYSE:VIV) reports a market cap of $17.84 billion.
12. Centrais Elétricas Brasileiras S.A. – Eletrobrás (NYSE:EBR-B)
Market Cap as of February 9: $21.85 billion
Centrais Elétricas Brasileiras S.A. – Eletrobrás (NYSE:EBR-B) is a Latin American electric utility company, headquartered in Brazil. The company specializes in electricity generation, transmission, and distribution. As of February 9, Centrais Elétricas Brasileiras S.A. – Eletrobrás (NYSE:EBR-B) has a market cap of $21.85 billion.
13. Ecopetrol S.A. (NYSE:EC)
Market Cap as of February 9: $24.40 billion
Ecopetrol S.A. (NYSE:EC) is the largest petroleum company in Colombia. The company specializes in oil, gas, petroleum, and environmental management. Ecopetrol S.A. (NYSE:EC) reports a market cap of $24.40 billion, as of February 9.
12. WEG S.A. (OTC:WEGZY)
Market Cap as of February 9: $28.43 billion
WEG S.A. (OTC:WEGZY) is ranked among the most valuable companies in Latin America. The company specializes in generators, motors, transformers, and automation among others. As of February 9, WEG S.A. (OTC:WEGZY) has a market cap of $28.43 billion.
11. Banco Bradesco S.A. (NYSE:BBD)
Market Cap as of February 9: $29.05 billion
Banco Bradesco S.A. (NYSE:BBD) is a financial services and banking company in Brazil. The company offers financial and insurance services including health, property and casualty, life insurance, and pension plans. As of February 9, Banco Bradesco S.A. (NYSE:BBD) boasts a market cap of $29.05 billion.
10. Grupo México, S.A.B. de C.V. (OTC:GMBXF)
Market Cap as of February 9: $39.61 billion
Grupo México, S.A.B. de C.V. (OTC:GMBXF) is ranked among the most valuable Latin American companies on our list. The leading mining company operates across three major business segments, including transportation, infrastructure, and copper production. As of February 9, Grupo México, S.A.B. de C.V. (OTC:GMBXF) boasts a market cap of $39.61 billion.
9. Ambev S.A. (NYSE:ABEV)
Market Cap as of February 9: $41.02 billion
Ambev S.A. (NYSE:ABEV) is a brewing company in Brazil, specializing in the production, distribution, and sale of beverages. As of February 9, Ambev S.A. (NYSE:ABEV) has a market cap of $41.02 billion. It is ranked 9th on our list.
8. Banco Santander (Brasil) S.A. (NYSE:BSBR)
Market Cap as of February 9: $42.82 billion
Banco Santander (Brasil) S.A. (NYSE:BSBR) is a subsidiary of a Spanish multinational financial company. Its offerings include pension plans, mortgages, cards, loans, and investment funds. As of February 9, Banco Santander (Brasil) S.A. (NYSE:BSBR) boasts a market cap of $42.82 billion.
7. Nu Holdings Ltd. (NYSE:NU)
Market Cap as of February 9: $45.83 billion
Nu Holdings Ltd. (NYSE:NU) is ranked 7th on our list of the most valuable companies in Latin America. It is a digital banking company headquartered in Brazil. As of February 9, Nu Holdings Ltd. (NYSE:NU) has a market cap of $45.83 billion.
6. América Móvil, S.A.B. de C.V. (NYSE:AMX)
Market Cap as of February 9: $54.27 billion
América Móvil, S.A.B. de C.V. (NYSE:AMX) is ranked 6th among the most valuable Latin American companies. Headquartered in Mexico, it is a leading telecommunication company providing wireless and fixed voice services. As of February 9, the company reports a market cap of $54.27 billion.
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Disclosure: none. 20 Most Valuable Latin American Companies is originally published on Insider Monkey.