Industries with the Highest Profit Margin in the US in 2023

1. Trusts & Estates in the US

Profit Margin 2023: 50.5%

The Trusts and Estates industry comprises trusts, estates and agency accounts administered on behalf of beneficiaries under the terms established in a fiduciary contract. Industry revenue, composed primarily of capital gains on trusted assets and ordinary dividends, exhibited an increase over the past five years. The industry benefited from substantial yields in equity markets and appreciation in house prices during the current period. Over the past five years, revenue has climbed at a CAGR of 2.8% to $221.4 billion, including an expected 4.2% increase in 2023. Profit is expected to dip to 50.5% of revenue in 2023 from 51.1% in... Learn More

2. Residential RV & Trailer Park Operators in the US

Profit Margin 2023: 50.5%

Residential RV and Trailer Park industry operators are made up of companies that act as lessors of residential RV and trailer park sites, performing on-site community operating and management functions. Over the five years to 2023, residential RV and trailer park operators have grown in line with per capita disposable income and the steep rise in housing prices that coincided with the effects of COVID-19. This rise in the cost of housing pushed many consumers toward less expensive alternatives, such as owning a manufactured home or RV and leasing from RV and trailer park operators. These operators primarily cater to... Learn More

3. Land Leasing in the US

Profit Margin 2023: 50.3%

Land leasing companies rent land for residential or commercial use, often for manufactured homes. Leasers range from individuals with small plots to large companies that manage entire communities. Manufactured homes offer a more affordable alternative to traditional on-site housing. In the past five years, land leasing revenue grew at a CAGR of 2.0% but will fall 5.2% to $17.7 billion in 2023. Profit remains high at 50.3% of revenue.

New housing starts slowed and supply fell in the past few years, pushing prices to extreme highs. The rush to build homes and apartments brought a surge in revenue for private landowners.... Learn More

4. Commercial Leasing in the US

Profit Margin 2023: 48.8%

Operators in the Commercial Leasing industry serve as lessors of buildings for nonresidential purposes. Industry participants include owner-lessors of nonresidential buildings, establishments that rent real estate and then act as lessors in subleasing it, and establishments that provide full-service office space. Over the five years to 2023, rising per capita disposable income encouraged more businesses to enter the market. Moreover, incumbent businesses are inclined to increase their production and inventory levels to tap into the growing consumer demand, thus demanding more space. However, declining corporate profit in 2020 partially dampened demand for commercial leasing due to lower confidence in their... Learn More

5. Security Software Publishing in the US

Profit Margin 2023: 45.9%

The explosion of data, internet-enabled solutions and cloud services have stimulated the expansion of security software services. Companies purchase software to avoid heavy financial losses, damaged reputations or compromised data and sales. Revenue has skyrocketed at a CAGR of 17.8% over the past five years to reach $63.0 billion with a profit of 42.4% in 2023. Revenue jumped 14.0% in 2023 thanks to a widening customer base.

COVID-19 accelerated this trend as employees and customers interacted with companies online. More businesses invested in anti-malware and virtual private network (VPN) software to protect take-home laptops, data sharing, virtual meetings and client information.... Learn More

6. Regional Banks in the US

Profit Margin 2023: 45.8%

Regional banks are composed of commercial banks that have between $50.0 billion and $500.0 billion in domestic asset under management (AUM) and operations are not limited to one state. Banks that fall into this threshold provide the same services that the commercial banking industry provides. Also, regional banks have a significantly smaller scope of operations compared with large commercial banks that operate across the country.

Through the end of 2023, operators in regional banks have benefited due to increased consumer confidence and consumer debt levels. This coincided with the Federal Reserve raising the Federal Funds Rate (FFR) during the early portion... Learn More

7. Private Equity, Hedge Funds & Investment Vehicles in the US

Profit Margin 2023: 45.6%

The industry consists of funds that raise capital to invest in various asset classes. Industry assets have become increasingly integral to institutional investors' portfolios and the larger asset-management market in recent years. Institutional investors are individuals or organizations that trade securities in such substantial volumes that they qualify for lower commissions and fewer protective regulations, since it's assumed that they're knowledgeable enough to protect themselves. Increasing demand from institutional investors has contributed to the surge in the industry's assets under management (AUM) and revenue during the current period.

In recent years, the industry has continued to enmesh itself more deeply within... Learn More

8. Savings Institutions & Other Depository Credit Intermediation in the US

Profit Margin 2023: 44.5%

The industry has largely continued on its long-term trajectory of decline over the last five years. The industry continues to lose market share to more dynamic commercial banks as well as financial technology companies. The industry received tailwinds from regulations and the real estate market as a result of recovering economy and low interest rates related to the pandemic, limiting the industry's overall decline. Savings institutions' revenue has been dropping at a CAGR of 1.9% over the past five years – including an estimated 0.1% increase in the current year – and is expected to total $71.0 billion in 2023,... Learn More

9. Shopping Mall Management in the US

Profit Margin 2023: 42.5%

Shopping mall management servicers consist of companies that develop, lease, maintain, repair and secure large commercial property in exchange for rental payments from retailers and businesses. For operators, rental income generates the largest portion of industry revenue with income from property management fees following. Accordingly, revenue primarily fluctuates in line with rental rates and occupancy levels. Through the end of 2023, growth in household earnings has boosted demand for retail space rental and food service space rental from businesses. However, this growth is offset by a growing popularity of online-based retailers such as Amazon.com Inc. The impact of COVID-19 in... Learn More

10. Merchant Banking Services in the US

Profit Margin 2023: 42.4%

The Merchant Banking Services industry has grown moderately through the end of 2023. Merchant banks provide equity, debt and trade financing to middle-market private companies. Merchant banks often invest in the debt of private companies in the form of mezzanine financing and senior loans. Regarding trade financing, merchant banks provide foreign corporate investment and international transaction facilitation services; they also offer lines of credit and issue letters of credit between importers and exporters. While large financial holding companies, like The Goldman Sachs Group Inc. (Goldman Sachs), have merchant banking segments or subsidiaries, most merchant banks are relatively small and specialized,... Learn More