Even if a company is profitable, it doesn’t always mean it’s a great investment. Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.

Not all profitable companies are created equal, and that’s why we built StockStory - to help you find the ones that truly shine bright. Keeping that in mind, here are three profitable companies that don’t make the cut and some better opportunities instead.

The New York Times (NYT)

Trailing 12-Month GAAP Operating Margin: 16%

Founded in 1851, The New York Times (NYSE: NYT) is an American media organization known for its influential newspaper and expansive digital journalism platforms.

Why Do We Pass on NYT?

1. Number of subscribers has disappointed over the past two years, indicating weak demand for its offerings
2. Operating margin of 14.9% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
3. Underwhelming 16.3% return on capital reflects management’s difficulties in finding profitable growth opportunities

At $74.00 per share, The New York Times trades at 3.9x forward price-to-sales. To fully understand why you should be careful with NYT, check out our full research report (it’s free).

WillScot Mobile Mini (WSC)

Trailing 12-Month GAAP Operating Margin: 7%

Originally focusing on mobile offices for construction sites, WillScot (NASDAQ: WSC) provides ready-to-use temporary spaces, largely for longer-term lease.

Why Should You Sell WSC?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.5% annually over the last two years
2. Earnings per share have dipped by 1.8% annually over the past five years, which is concerning because stock prices follow EPS over the long term
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

WillScot Mobile Mini is trading at $24.13 per share, or 20.9x forward P/E. Check out our free in-depth research report to learn more about why WSC doesn’t pass our bar.

Walker & Dunlop (WD)

Trailing 12-Month GAAP Operating Margin: 5.8%

Originating as a small mortgage banking firm during the Great Depression in 1937, Walker & Dunlop (NYSE: WD) provides commercial real estate financing, property sales, appraisal, and investment management services with a focus on multifamily properties.

Why Do We Avoid WD?

1. Loans are facing significant end-market challenges during this cycle as net interest income has declined by 37.8% annually over the last five years
2. Earnings per share fell by 14.4% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
3. Annual tangible book value per share declines of 7.5% for the past five years show its capital management struggled during this cycle

Walker & Dunlop’s stock price of $50.53 implies a valuation ratio of 0.9x forward P/B. Read our free research report to see why you should think twice about including WD in your portfolio.

Stocks We Like More

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week - FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.