Baldrige
Stock Study 2001
Results
of 1990-1999 Baldrige Award Recipients
10-Year Common Stock Comparison
Methodology:
A hypothetical
sum was invested in each of the 1990-1999, publicly-traded
Baldrige Award recipient's common stock, in the year they
applied for the Award. The investment was tracked from the
first business day of the month following the announcement
of the Award recipients, (or the date when they began public
trading, if it is later) through December 1, 2000. $1,000
was invested in each whole company, and for subsidiaries the
sum invested was $1,000 multiplied by the percent of the whole
company's employee base the subunit represented at the time
of its application. The same total dollar amount was invested
in the Standard & Poor's (S&P) 500 on the same day.
If a subunit was sold to another parent company, or if a company
divested or merged, it was the subunit whose progress was
followed, not the parent company's progress. The value of
the original stock at the time of sale was determined and
that dollar amount was reinvested in the new parent company.
Adjusting for stock splits, the value on December 1, 2000
was calculated. Information is reported two ways: all publicly-traded
Award recipients and only whole company Baldrige Award recipients.
The 24 publicly-traded Award recipients, as a group, outperformed
the S&P 500 by approximately 4.2 to 1, achieving a 685.26%
return compared to a 163.11% return for the S&P 500. The
group of five, publicly traded, whole company Award recipients
outperformed the S&P 500 by 4.4 to 1, achieving a 764.84%
return compared to a 173.34% return for the S&P 500. A
summary of the results follows.
1990
- 1999 Publicly Traded Award Recipients
|
$
Investment |
$
Value - 12/1/00 |
Change |
1990-1999
Award Recipients |
7,282.35 |
57,185.19 |
685.26% |
S&P
500 |
7,282.35
|
19,160.33 |
163.11%
|
1990
- 1999 Publicly Traded Whole Company Award Recipients
|
$
Investment |
$
Value - 12/1/00 |
Change |
1990-1999
Whole Company Award Recipients |
5000 |
43,241.93 |
764.84% |
S&P
500 |
5000
|
13,667.22 |
173.34%
|
Results of 1990-1999
Baldrige Site Visited Applicants
10-Year Common Stock Comparison
Methodology:
A hypothetical
sum was invested in each 1990-1999 publicly-traded, site visited
applicant's common stock in the year they applied for the
Award or in the year they became public. (The site visited
applicant group includes Baldrige Award recipients.) The investment
was tracked from the first business day of the month following
the announcement of the Baldrige Award recipients (or the
date when they began public trading, if it is later) through
December 1, 2000. $1,000 was invested in each whole site visited
company. For subsidiaries, the sum invested was $1,000 x the
percent of the parent company's employee base the subunit
represented at the time they received a site visit or at the
time they became public as a result of a merger or acquisition
by a new parent. The same total dollar amount was invested
in the S&P 500 on the same day.
Adjusting
for stock splits, the value on December 1, 2000 was calculated.
Information is reported two ways: all publicly-traded site
visited applicants and only whole company site visited applicants.
(Note: a company may be included multiple times if they received
more than one site visit. Site visited applicants include
those receiving an Award.)
The 70
publicly-traded site visited applicants, as a group, outperformed
the S&P 500 by approximately 2.1 to 1 achieving a 321.80%
return compared to a 153.54% return for the S&P 500. The
group of 13 whole company site visited applicants outperformed
the S&P 500 by almost 2 to 1, achieving a 312.39% return
compared to a 158.12% return for the S&P 500. Names of
Baldrige applicants are kept confidential. A summary of the
results follows.
[NOTE:
In the future, NIST will no longer include site-visited applicants
in this study. ]
1990
- 1999 Publicly Traded Site Visited Award Applicants
|
$
Investment |
$
Value - 12/1/00 |
Change |
1990-1999
Site Visit Applicants |
23,537.43 |
99,280.06 |
321.80% |
S&P
500 |
23,537.42
|
59,676.37 |
153.54%
|
1990
- 1999 Publicly Traded Whole Company Site Visited Award Applicants
|
$
Investment |
$
Value - 12/1/00 |
Change |
1990-1999
Whole Company Site Visited Applicants |
13000 |
53,610.91 |
312.39% |
S&P
500 |
13000
|
33,555.82 |
158.12%
|
AWARD RECIPIENTS
INCLUDED IN THE STOCK STUDY
(Those not included were not publicly held at the time of
the study)
Whole Company Award Recipients
ADAC Laboratories (1996)
Eastman Chemical Company (1993)
Federal Express Corporation (1990)
Solectron Corporation (1991 and 1997)
Subunit
Award Recipients (with parent company)
(The sum invested was $1000 x the % of the parent company's
employee base that the subunit represented at the time the
subunit applied.)*
3M Dental
Products Division (1997)
3M
Armstrong
Building Products Operations (1995)
Armstrong World Industries, Inc.
AT&T
Consumer Communication Services (1994)
Consumer Markets Division of AT&T
AT&T
Network Systems - Transmission Systems Business Unit (1992)
Lucent Technologies, Inc., Network Systems
AT&T
Universal Card Services (1992)
Citigroup, Inc.
Boeing
Airlift and Tanker Programs (1998)
The Boeing Company
Cadillac
Motor Car Company (1990)
General Motors
Corning
Telecommunications Products Division (1995)
Corning Incorporated
Dana Commercial
Credit Corporation (1996)
Dana Corporation
GTE Directories
Corporation (1994)
GTE Corporation
IBM Rochester,
AS/400 Division (1990)
IBM Corporation
Merrill
Lynch Credit Corporation (1997)
Merrill Lynch & Co.
Solar
Turbines Incorporated (1998)
Caterpillar Inc.
STMicroelectronics,
Inc. - Region Americas (1999)
STMicroelectronics, Inc.
Texas
Instruments Incorporated - Defense Systems & Electronics
Group (1992)
Raytheon Company
The Ritz
Carlton Hotel Company (1992, first included in 1997 study
and 1999)
Marriott International
*(Ritz Carlton became public when Marriott International
acquired it. The sum invested was based on the sum of Marriott's
employee base.)
Xerox
Business Services (1997)
Xerox Corporation
Zytec
Corporation (1991)
Artesyn Technologies
*(As of 12/29/97 Zytec Corporation merged with Computer
Products and formed Artesyn Technologies. Dollars invested
in Zytec were carried forward into Atesyn with a 1.33 split
multiplier.)
NIST
2000 Stock Study of Malcolm Baldrige National
Quality Award Recipients
Date of Investment
|
Whole Company Recipient or Parent (Subsidiary Recipient)
|
Stock
Purchases
Price
$Invested
|
December
1, 2000 Close
|
Price |
$
Value |
% Change |
11/1/90
|
General
Motors (Cadillac Motor Car Division)
|
36.875
|
13.39
|
50.31
|
18.27
|
36.43
|
11/1/90
|
Federal
Express Corporation
|
33.375
|
1000.00
|
47.48
|
5690.49
|
469.05
|
11/1/90
|
IBM
(IBM Rochester)
|
107.25
|
17.62
|
95.63
|
62.84
|
256.66
|
11/1/91
|
Solectron
|
28.25
|
1000.00
|
29.00
|
32849.56
|
3184.96
|
11/2/92
|
CitiGroup
(AT&T Universal Card Services)
|
44.125
|
6.53
|
48.94
|
53.19
|
714.59
|
11/2/92
|
Lucent
(AT&T Transmission Systems Business Unit)
|
44.125
|
37.54
|
15.69
|
78.12
|
108.09
|
11/2/92
|
Raytheon
(Texas Instruments DSEG)
|
49.375
|
246.61
|
29.81
|
531.29
|
115.44
|
11/11/93
|
Artesyn
(Zytec)
|
10.5
|
1000.00
|
35.75
|
12150.56
|
1115.06
|
1/3/94
|
Eastman
Chemical
|
45.125
|
1000.00
|
44.38
|
983.49
|
-1.65
|
11/1/94
|
AT&T
(AT&T Consumer Communications Services)
|
54.5
|
159.26
|
19.56
|
110.13
|
-30.85
|
11/1/94
|
GTE
(GTE Directories)
|
30.5
|
41.88
|
56.06
|
103.25
|
146.54
|
11/1/95
|
Armstrong
World Industries (Building Products Operations
|
58.875
|
118.25
|
1.00
|
2.01
|
-98.30
|
11/1/95
|
Corning
Incorporated (Corning TPD)
|
25.75
|
36.41
|
60.94
|
302.17
|
729.91
|
11/1/96
|
ADAC
Laboratories
|
20.875
|
1000.00
|
18.38
|
880.48
|
-11.95
|
11/1/96
|
Dana
(Commercial Credit)
|
29.875
|
11.27
|
17.25
|
6.51
|
-42.26
|
11/3/97
|
3M
(Dental Products Division)
|
92.1875
|
9.90
|
99.63
|
10.70
|
8.07
|
11/3/97
|
Merrill
Lynch (Credit)
|
69.75
|
16.51
|
58.44
|
27.66
|
67.57
|
11/3/97
|
Solectron
|
40.875
|
1000.00
|
29.00
|
2837.92
|
183.79
|
11/3/97
|
Xerox
(Business Services)
|
79.875
|
149.54
|
6.25
|
23.40
|
-84.35
|
3/30/98
|
Marriott
(The Ritz Carlton Hotel, 1992 recipient )
|
35.94
|
96.53
|
41.88
|
112.49
|
16.54
|
12/1/98
|
Boeing
(Airlift & Tanker Programs)
|
40.375
|
36.91
|
65.81
|
60.17
|
63.00
|
12/1/98
|
Solar
Turbines, Inc.
|
51.94
|
95.16
|
40.69
|
74.55
|
-21.66
|
12/1/99
|
Marriott
(The Ritz Carlton Hotel )
|
33.125
|
96.52
|
41.88
|
122.04
|
26.43
|
12/1/99
|
STMicroelectronics,
Inc.
|
125.4375
|
92.52
|
42.44
|
93.91
|
1.50
|
Totals
|
Baldrige Award Recipients
S&P 500
|
|
7282.35
7282.35
|
|
57,185.19
19,160.33
|
685.26
163.11
|
Date created:
April 6, 2001
Last updated: August 29, 2001
Page maintenance: Crissy
Robinson.
|