Teva (Nasdaq: TEVA; TASE:TEVA), has the second largest market cap non-US company in the Nasdaq 100 index, after Sweden’s Ericsson (Nasdaq:ERICY). Teva, the world’s leading generic drug maker, was only recently included in the index.
Teva’s market cap is almost $10 billion, placing it among the top 20 Nasdaq 100 companies by this measure. Microsoft (Nasdaq:MSFT) is ranked first at $254 billion, followed by Intel (Nasdaq:INTC) at $104 billion, and Cisco Systems (Nasdaq:CSCO) at $97 billion. Ericsson, which manufactures communications equipment, is traded at a market cap of $13 billion.
Market cap is not the sole parameter determining a company’s index rank. Tradability and share price are also key factors; consequently, although Teva follows Ericsson in terms of market cap, Teva’s weight among non-US companies in the Nasdaq 100 index is higher, at almost 1%, compared with Ericsson’s weight of only 0.14%.
Teva’s 1% index weight ranks it 31st in the index. The next ranking non-US company, Singapore’s Flextronix International (Nasdaq:FLEX), a manufacturer of electronics components, is far behind, ranked in 46th place, with an index weight of 0.6% and market cap of $4.2 billion. Ericsson is ranked 98th.
As expected, Microsoft leads the Nasdaq 100, with a weight of 11.5%, followed by Intel with 4.8%.
Other Israeli Nasdaq 100 companies are 55th-place information security company Check Point (Nasdaq: CHKP), with a market cap of $3.5 billion and index weight of 0.45%; and semi-Israeli 57th-place Mercury Interactive Corporation (Nasdaq: MERQ), with a $3 billion market cap and index weight of 0.42%. Although registered in the US, Mercury, which develops enterprise software performance enhancement solutions, is managed by Israelis and maintains a large development center in Israel.
Comverse Technology (Nasdaq: CMVT) is also included in the Nasdaq 100, with a market cap of $1.8 billion and an index weight of 0.25%. Like Mercury, Comverse, which develops voice mailboxes, is also registered in the US, managed by Israelis and has a large development center in Israel.
Published by Globes [online] - www.globes.co.il - on February 3, 2003