5 Stocks With the Highest EBITDA Margins in Their Industry

EBITDA margin is one of the best ways to measure profitability across companies because it focuses on core operations while removing the noise of financing and accounting differences.

Within each industry, the companies with the highest EBITDA margins usually enjoy stronger efficiency, pricing power, and competitive durability.

For investors, these companies stand out as the most profitable operators in their respective sectors, showing an ability to convert revenue into earnings at a higher rate than peers.

Here are 5 stocks with the highest EBITDA margins in their industry, offering a look at businesses that set the standard for operational strength.

Unlock our Free Report: 5 undervalued compounders with upside based on Wall Street’s growth estimates that could deliver market-beating returns (Sign up for TIKR, it’s free) >>>

Here are 3 of these stocks that analysts think have the most upside today:

Nvidia (NVDA)

Nvidia is a leading semiconductor company best known for its graphics processing units, which have become central to gaming, artificial intelligence, and data center applications.

The company reported revenues of approximately $130.5 billion in fiscal 2025, representing more than 114% year-over-year growth driven by surging demand for AI-related computing. Its trailing twelve-month net income margin stands at roughly 51.69%, highlighting exceptional profitability in a capital-intensive industry.

While the company’s dividend yield is a minimal 0.02%, it is known for reinvesting heavily in research and development to maintain its technological lead. Its focus on AI chips, high-performance computing, and strategic partnerships positions the company as a core beneficiary of the ongoing growth in machine learning and cloud infrastructure.

Value stocks like Nvidia in under a minute with TIKR’s new Valuation Model (It’s free) >>>

Microsoft (MSFT)

Microsoft is a global technology leader with a diversified business spanning cloud computing, software, hardware, and digital services.

Its Azure platform has become one of the largest players in cloud infrastructure, contributing significantly to overall revenue growth alongside its Office productivity suite and LinkedIn. In its most recent fiscal year, Microsoft reported revenues of approximately $281.72 billion and achieved a return on equity of about 32.44%, highlighting its strong profitability and efficient capital use.

The company pays a dividend yield of around 0.66% while consistently reinvesting in growth areas such as artificial intelligence, cybersecurity, and enterprise software. With its wide moat, recurring revenue streams, and continued expansion into next-generation technologies, Microsoft remains one of the most resilient and scalable companies in the tech sector.

Track Microsoft’s financials, growth trends, and analyst forecasts on TIKR (it’s free)>>>

Visa (V)

Visa is one of the world’s largest payment networks, facilitating transactions for consumers, merchants, and financial institutions across more than 200 countries.

Its business model generates revenues primarily from transaction fees, providing high-margin, recurring income. In its most recent fiscal year, Visa recorded revenues of about $35.93 billion and delivered a return on equity of about 52.65%, highlighting its capital efficiency and profitability.

The company pays a dividend yield of around 0.69%, with significant share buybacks adding to shareholder returns. Visa’s scale, global reach, and exposure to the ongoing shift from cash to digital payments position it as a key beneficiary of long-term structural growth in electronic transactions.

See if top investors & hedge funds are buying or selling Visa right now (It’s free) >>>

Wall Street Analysts Are Bullish on These 5 Undervalued Compounders With Market-Beating Potential

TIKR just released a new free report on 5 compounders that appear undervalued, have beaten the market in the past, and could continue to outperform on a 1-5 year timeline based on analysts’ estimates.

Inside, you’ll get a breakdown of 5 high-quality businesses with:

• Strong revenue growth and durable competitive advantages
• Attractive valuations based on forward earnings and expected earnings growth
• Long-term upside potential backed by analyst forecasts and TIKR’s valuation models

These are the kinds of stocks that can deliver massive long-term returns, especially if you catch them while they’re still trading at a discount.

Whether you’re a long-term investor or just looking for great businesses trading below fair value, this report will help you zero in on high-upside opportunities.

Click here to sign up for TIKR and get our full report on 5 undervalued compounders completely free.

Looking for New Opportunities?

• See what stocks billionaire investors are buying so you can follow the smart money.
• Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
• The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.

Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!