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Sageworks | 5565 Centerview Drive | Raleigh, NC 27606 | 919.851.7474 x596 | www.sageworks.com
1
The 15 Most Profitable Industries
A data release from Sageworks
NAICS Code Industry Net Profit
Margin
5412 Accounting, Tax Preparation, Bookkeeping, and Payroll Services 19.8%
5411 Legal Services 17.8%
2111 Oil and Gas Extraction 16.4%
5324 Commercial and Industrial Machinery and Equipment Rental and Leasing 16.4%
6212 Offices of Dentists 14.9%
5311 Lessors of Real Estate 14.1%
6211 Offices of Physicians 14.1%
5312 Offices of Real Estate Agents and Brokers 14.1%
6213 Offices of Other Health Practitioners 12.6%
5511 Management of Companies and Enterprises 12.6%
6214 Outpatient Care Centers 11.7%
6116 Other Schools and Instruction 11.3%
5313 Activities Related to Real Estate 10.8%
8122 Death Care Services 10.7%
2131 Support Activities for Mining 10.5%
5565 Centerview Drive | Raleigh, NC 27606
www.sageworks.com | P 919.851.7474 x596 | F 919.851.6718
Raleigh, N.C., August 6, 2014 – Based on an analysis of the financial statements of privately held companies, Sageworks,
a financial information company, ranked all industries by net profit margin over the last 12 months and found that
accounting services topped the list, with a net profit margin averaging 19.8 percent in the 12 months ended July 2014. The
other industries in the top five are legal services, oil and gas extraction, equipment rental and leasing and offices of dentists.
Seven of the top fifteen industries are related to health care or real estate. Net profit margin has been adjusted to exclude
taxes and include owner compensation in excess of their market-rate salaries.
“Many of these industries are consistently at the top of the list because they are profitable by their very nature,” explained
Sageworks analyst Jenna Weaver. She points out that service-based businesses can attain strong profit margins based on
their ability to keep costs low, while being able to charge a premium for their specialized services. “These kinds of
businesses sell services from bookkeeping to legal advice to health care and do not need to purchase as many, if any,
physical goods,” Weaver said.
The 15 Industries with the Highest Net Profit Margin – Last 12 Months
Source: Sageworks
Sageworks | 5565 Centerview Drive | Raleigh, NC 27606 | 919.851.7474 x596 | www.sageworks.com
2
About Sageworks
Sageworks is a financial information company and the leader in the analysis of privately held companies. The company
provides risk-management solutions to financial institutions and financial analysis and benchmarking applications to
accounting firms and private companies. Sageworks data and applications are used by thousands of accounting firms and
financial institutions across North America and internationally.
About Our Data
Sageworks possesses a proprietary database of privately held company financial statements aggregated by industry. Each
day, approximately 1,000 of these financial statements are collected by Sageworks from accounting firms, banks and credit
unions through a cooperative data model with Sageworks’ clients. The data is segmented and can be queried by 1,400
industry codes, 70 financial metrics, company size and geographic location. Sageworks releases a quarterly Private
Company Report, which provides a snapshot of U.S. private-company performance. Sageworks data and analysis has been
used by most major media outlets and is featured weekly on Forbes.com through the "Sageworks Stats" blog.
Contact Us
Sageworks Data & Research Team
Email: research@sageworks.com
Phone: 919-851-7474 ext. 596
Twitter: @sageworks

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The 15 Most Profitable Industries

  • 1. Sageworks | 5565 Centerview Drive | Raleigh, NC 27606 | 919.851.7474 x596 | www.sageworks.com 1 The 15 Most Profitable Industries A data release from Sageworks NAICS Code Industry Net Profit Margin 5412 Accounting, Tax Preparation, Bookkeeping, and Payroll Services 19.8% 5411 Legal Services 17.8% 2111 Oil and Gas Extraction 16.4% 5324 Commercial and Industrial Machinery and Equipment Rental and Leasing 16.4% 6212 Offices of Dentists 14.9% 5311 Lessors of Real Estate 14.1% 6211 Offices of Physicians 14.1% 5312 Offices of Real Estate Agents and Brokers 14.1% 6213 Offices of Other Health Practitioners 12.6% 5511 Management of Companies and Enterprises 12.6% 6214 Outpatient Care Centers 11.7% 6116 Other Schools and Instruction 11.3% 5313 Activities Related to Real Estate 10.8% 8122 Death Care Services 10.7% 2131 Support Activities for Mining 10.5% 5565 Centerview Drive | Raleigh, NC 27606 www.sageworks.com | P 919.851.7474 x596 | F 919.851.6718 Raleigh, N.C., August 6, 2014 – Based on an analysis of the financial statements of privately held companies, Sageworks, a financial information company, ranked all industries by net profit margin over the last 12 months and found that accounting services topped the list, with a net profit margin averaging 19.8 percent in the 12 months ended July 2014. The other industries in the top five are legal services, oil and gas extraction, equipment rental and leasing and offices of dentists. Seven of the top fifteen industries are related to health care or real estate. Net profit margin has been adjusted to exclude taxes and include owner compensation in excess of their market-rate salaries. “Many of these industries are consistently at the top of the list because they are profitable by their very nature,” explained Sageworks analyst Jenna Weaver. She points out that service-based businesses can attain strong profit margins based on their ability to keep costs low, while being able to charge a premium for their specialized services. “These kinds of businesses sell services from bookkeeping to legal advice to health care and do not need to purchase as many, if any, physical goods,” Weaver said. The 15 Industries with the Highest Net Profit Margin – Last 12 Months Source: Sageworks
  • 2. Sageworks | 5565 Centerview Drive | Raleigh, NC 27606 | 919.851.7474 x596 | www.sageworks.com 2 About Sageworks Sageworks is a financial information company and the leader in the analysis of privately held companies. The company provides risk-management solutions to financial institutions and financial analysis and benchmarking applications to accounting firms and private companies. Sageworks data and applications are used by thousands of accounting firms and financial institutions across North America and internationally. About Our Data Sageworks possesses a proprietary database of privately held company financial statements aggregated by industry. Each day, approximately 1,000 of these financial statements are collected by Sageworks from accounting firms, banks and credit unions through a cooperative data model with Sageworks’ clients. The data is segmented and can be queried by 1,400 industry codes, 70 financial metrics, company size and geographic location. Sageworks releases a quarterly Private Company Report, which provides a snapshot of U.S. private-company performance. Sageworks data and analysis has been used by most major media outlets and is featured weekly on Forbes.com through the "Sageworks Stats" blog. Contact Us Sageworks Data & Research Team Email: research@sageworks.com Phone: 919-851-7474 ext. 596 Twitter: @sageworks