Investing into high margin companies could end in a better return. The underlying thought is simple: A companies that works on higher margin can survive a market correction more likely and become stronger after a recession.
Attached, you can find a list of companies with high profit margins. Those could be a first step to start a further research.
In general, the margin tells us something about the competition as well as the business model.
High margins mean that the corporate make many business processing steps by it. The competition is less hard. Products are unique and could have a market barrier.
|High-Margin Stocks (click to enlarge); Source: Valuewalk; Barclays|