Magic Formula Stocks

The Magic Formula is Joel Greenblatt’s screen from The Little Book That Beats the Market. It ranks companies on two measures together: earnings yield, for how cheaply the business is priced, and return on capital, for how efficiently it turns capital into profit. Either alone is easy to game, since cheap without quality is often a value trap and quality without a sensible price is often just expensive. This scan lists the US-listed stocks scoring well on both.