The objective of this study was to determine if brands and patents helped companies to perform better. Drawing on a sample of the world’s and Singapore’s largest listed-companies, we identified companies which had the most valuable brands and/or largest patent portfolios, and sought to understand if they outperformed their peers in (i) revenue, (ii) net profit and (iii) market capitalisation. The study utilised ranking publications from Forbes1, Brand Finance2 and IFI Claims Patents Services3, and data from SGX, company annual reports and PatSnap.
Based on two-year averaged financial metrics4, the analysis found that among the world’s and Singapore’s top 100 largest listed-companies, those with the most valuable brands2 and/or the largest patent portfolios3 had on average about double the revenue, net profit, and market capitalisation than their peers.
The study findings suggest that intangible assets like brands and patents support companies in securing a competitive advantage, contributing to higher revenues, profits and market capitalisation.
According to the study, among the largest listed-companies, those with the most valuable brands and/or the largest patent portfolios outperform their peers in terms of revenue, net profit, and market capitalisation:
“With strong brands and/or patents”: Companies that were the owners of the most valuable brands and/or largest patent portfolios.
Financial metrics were two-year averages. “With Strong Brands and/or Patents”, n-size: 52; “Without strong brands and/or patents”, n-size: 48.
Sources: Forbes Global 2000, 2021 and 2022 editions; Brand Finance Global 500 Brands, 2022 and 2023 editions; IFI Claims Patent Services Global 250, 2021 and 2022 editions.
“With strong brands and/or patents”: Companies that were the owners of the most valuable brands and/or largest patent portfolios.
Financial metrics were two-year averages. “With Strong Brands and/or Patents”, n-size: 58; “Without strong brands and/or patents”, n-size: 42.
Sources: SGX StockFacts; Company annual reports; Brand Finance Singapore 100, 2021 and 2022 editions; PatSnap.
View the full study here
1 Forbes Global 2000, and its methodology, was used to identify the world’s and Singapore’s top 100 largest listed-companies.
2 Brand Finance Global 500 and Brand Finance Singapore 100 brand-value rankings were used to identify the world’s and Singapore’s top 100 most valuable brands.
3 IFI Claims Patents Services Global 250 rankings, and its methodology, was used to identify the world’s and Singapore’s top 100 organisations with the largest patent portfolios (based on the number of active patent families held by the organisation and its subsidiaries).
4 Two most recent annual financial statements at point of extraction, ranging from financial year 2020 to 2022, and as compiled by Forbes for the global cohort and IPOS for the Singapore cohort.