How the rankings were determined
The Houston Chronicle 100 rankings are based on the financial results of publicly traded Houston-area companies, which were collected and analyzed by S&P Global Market Intelligence. Other charts in this special section are based on information drawn from many sources.
The tables used numbers reported for calendar years 2018 and 2019, or as close as possible to the calendar year for companies with different fiscal years or reporting schedules. Data may reflect restatements for accounting changes, acquisitions or discontinued operations.
Other information was gathered by Chronicle researcher Katherine Feser, who surveyed companies to determine the area’s largest employers, grocers, privately owned businesses, hospitals and law firms.
Chronicle 100 scores
Companies based in the Houston area were ranked by a score based on four categories for 2019: total revenue, earnings-per-share growth, annual revenue growth and one-year total return to shareholders on a dividend-reinvested basis.
The companies were ranked in each of the criteria, with each category given equal weight. The best possible score in each category is 1. To calculate the overall score, the four rankings were added and then divided by 4.
To qualify, a company must have reported a profit for 2019.
The company’s stock price must have been above $1 per share as of May 7, 2020, and it must have traded for all of 2019. Companies must have had total sales exceeding $5 million for 2019 and $2.5 million for 2018.
The Chronicle 100 was derived from a list of 92 companies that met the criteria. The other public company charts are based on a set of 131 companies.
Kevin Kelly directed the research for S&P Global Market Intelligence. He can be reached at 303-721-4525 or kevin.kelly@spglobal.com.
General criteria
To qualify for charts based on financial performance of publicly held companies, a company must be traded on a major stock exchange — New York, Nasdaq or NYSE Amex — and have its headquarters in the Houston area. Some companies with dual headquarters, primary administrative offices or major operations in the area were considered.
Companies with overseas headquarters were included if their CEOs were based in the Houston area.
Revenue was defined as net
sales for 2019. In most cases, sales exclude excise taxes and other non-operating income.
Earnings-per-share growth was based on the percentage change in the earnings per share before extraordinary items. EPS growth can include one-time gains or losses, such as profits on asset sales, as long as they are reported before taxes on income statements.
Where the earnings-per-share number in the previous year was negative, the percentage change was calculated using the absolute difference.
Largest companies
This chart ranks companies by annual revenue. To be considered, companies had to be publicly traded on Dec. 31, 2019, and have met other criteria for Chronicle 100 chart consideration.
IPOs
This chart shows companies tracked by S&P Global Market Intelligence that had an initial public offering of shares in 2019. The companies are ranked by the value of the offer amount. The current market capitalization may include additional shares issued in subsequent offerings and/or private placements.
Banks
S&P Global Market Intelligence ranked bank holding companies and commercial banks based on deposits in the Houston area as of June 30, 2019.
Revenue growth
The revenue growth chart ranks companies by the annual percentage gain in revenue.
Employers
Companies were ranked by the number of full- and part-time workers they employ in Harris, Montgomery, Liberty, Chambers,
Galveston, Brazoria, Fort Bend, Waller, Austin and San Jacinto counties.
The companies supplied the numbers, some of which are estimates, for a Chronicle survey.
Some major employers are not on the list because they do not provide employment numbers by city or declined to participate. Government entities generally are not included.
Grocers
The list of grocers is based on a survey of stores and estimates from Wulfe & Co.
Hospitals
Area hospitals provided information about their Houston operations. Texas Health and Human Services supplemented the survey.
Law firms
The chart of biggest law firms is based on a Chronicle survey of the firms’ operations.
Private companies
Companies were ranked by revenue based on a Chronicle survey. In some cases, companies provided estimates. Auto dealers, banks, and lawyers’ and doctors’ practices were not included.