I’ve been doing a lot of research into the stock market today, and a question struck me. How many black owned stocks are out there? Black owned publicly traded companies are hard to come by.
I found a handful of companies that were publicly traded and minority-owned. In the age of Black Lives Matter, this is a matter of supreme urgency.
The generational wealth gap is partly due to systemic racism, and we can make a change by broadening our horizons and creating spaces for Black voices to be heard and Black dollars to be spent.
Investing in Black-owned stocks is a method of curing the generational wealth gap.
The nine companies we found are:
- RLJ Lodging Trust
- Urban One
- Ping Identity Holding
- Global Blood Therapeutics
- Carver Bancorp
- Broadway Financial Corp.
- Axsome Therapeutics
- American Shared Hospital Services
- Citizens Bancshares Corporation
Each of the above companies has a unique history and a specific sector they service. We’ll discuss each one in detail after addressing some concerning facts about Black-owned businesses on Wall Street.
According to data released recently by the Federal Reserve, only 33.5% of black households own stock in 2019, and 61% of white families own stock.
This is due to a lot of reasons, including viewing the stock market as gambling. The fact is, however, the stock market is not gambling. It is making wise Investments with the capital that you earn. Unfortunately, when it comes to Black-owned businesses in the stock market, the choices are very slim for who you can invest in.
There are only nine publicly traded companies owned by black entrepreneurs. According to the Washington Post, since the start of covid ownership and black businesses on Wall Street have dropped more than 40%. The Wealth gap in America is due to a history of systemic racism.
Covid-19 has exasperated the issue. How to invest in Black-owned stocks? We’ll answer this question by listing each one and the markets where you can find these Black-owned publicly traded companies from 2020-2022.
Best Black Owned Stocks to Invest In Today
1. RLJ Lodging Trust–Best Black Stock in Real Estate
The first company we’ll discuss is RLJ Lodging Trust. This Black-owned stock’s ticker is RLJ. RLJ is a real estate company, specifically a Real Estate Investment Trust (REIT).
Their sector is hospitality. Its portfolio consists of more than 103 hotels in 23 states. The concentration of their business is focused primarily on urban communities and densely populated cities.
The demand for their services arises from places with high levels of tourism and corporate events and vacationers. This company became a Black-owned publicly-traded company on the New York Stock Exchange (NYSE) in May of 2011.
According to Yahoo Finance, their most recent earnings in revenue were estimated at $231.28 million, and their sales growth was slated at 153.90%.
These are good numbers for any business. They were affected by COVID (as was the entire hospitality industry), yet they managed to profit and increase sales. Robert L. Johnson is the founder and chairman of the company, and Leslie D. Hale is the standing CEO.
Pros
- Real estate investing is lucrative
- It’s easy to break into the market
- This company has excellent growth
Cons
- Real estate investing requires a lot of knowledge surrounding the housing market
See Related: Best Ethical Mortgage Lenders to Consider
2. Urban One–Best Black Stock in Media
Next on our list is Urban One, a radio, and broadcasting company. They specialize in representing Black culture. On their website, they boast 20 million unique visitors, 200 million app streams, 82% of Black America reached, and 40 million video streams.
Urban One owns the brand’s TV One, Radio One, Reach Media, One Digital, One Solution, and Cleo TV. Its portfolio is rich and diverse as a media company, and its founder was recently recognized by the House of Representatives.
Cathy Hughes, the founder, has led the company for more than 40 years. She has made it America’s most prominent Black broadcasting network. She founded the company in 1979, and its headquarters is in Silver Spring, Maryland.
It was initially founded as Almic Broadcasting. The company started with one radio station—WOL(AM). Cathy Hughes is the first Black woman to lead a publicly-traded company.
Urban One is traded on the NASDAQ under the ticker UONE. The company reported $111.5million in revenue for September 30, 2021. They also reported an increase of 21.3% from the same period in 2020.
Operating income from broadcast activities and digital operations was $49.1 million.
Regular operating income was reported at $34.5 million for the quarter ending September 30, 2021—a decrease from $4.0 million in 2020. The decline is likely due to COVID-related hardships that hurt the whole economy.
Pros
- This company has a lot of assets
- Their revenue is high for a media company
- They have many holdings
Cons
- Their operating income has been decreasing, especially during COVID
3. Ping Identity Holding–Best Black Stock in Tech
Ping Identity Holding is a Black-owned stock founded by Andre Durand in 2002. They specialize in a wide variety of identity protection services. They are publicly traded on the NYSE under the ticker PING.
They specialize in various digital and online identity protection services, including their trademarked Ping intelligent identity platform, identity data management, intelligent access controls, and multi-factor authentication.
In 2016, Vista Equity Partners bought the company and went public in 2019.
Their clientele includes 13 of the largest banks in the United States, five of the largest retailers, and seven of the largest healthcare companies.
Ping Identity Holding reports an estimated $71.22 million in revenue for the quarter ending December 2021 and a sales growth of 12.60%. According to Yahoo Finance analysts, growth is projected to be 17.30% over the next five years.
Pros
- They are a tech company
- It’s easy to invest in this company without prior knowledge
- Their clientele is excellent
- They have a great outlook on growth for the next five years
Cons
- If you are unfamiliar with technology, it may be hard to wrap your head around what the company does
- The company is relatively young
4. Global Blood Therapeutics–Best Black Stock in Medicine
Global Blood Therapeutics is another Black-owned publicly-traded company. According to Investopedia and the CDC, there are estimated to be 100,000 Americans living with sickle cell disease.
This disease affects the Black community more than any other demographic. With one in every 365 children diagnosed with sickle cell anemia, there has to be a cure. Global Blood Therapeutics is dedicated to finding that cure. They are a biopharmaceutical company.
This Black stock is traded on the NASDAQ under the ticker GBT. Historically, Black people have had little to no access to healthcare. This is another part of systemic racism where Black lives are treated as less than or not as good as White lives.
Thanks to companies like GBT, awareness is being raised, and therapies are being developed to cure a significant disease within the community. GBT went public just four years after they were founded.
They patented the first treatment for sickle cell disease approved by the FDA. In 2019 Global Blood Therapeutics partnered with Syros Pharmaceuticals to develop new therapies for sickle cell disease and Beta Thalassemia (another blood disorder).
In the quarter ending December 2021, GBT reported estimated earnings of $55.34 million. Their sales growth was up 34% from 2020.
Recently, the company announced Oxbryta (voxelotor), a once-daily dosage to be taken orally for treating sickle cell disease, was approved by the FDA and made available through their pharmacy partner network.
The strides they’ve taken have increased the life expectancy of patients with sickle cell disease, and they’ve made strides in improving healthcare for minority communities. In addition, the FDA approved the treatment for children ages four to twelve.
Oxbryta is the first and only medication designed to target sickle hemoglobin polymerization.
Kim Smith, the company’s vice president and head of research and development, stated, “The FDA’s recent approval of the new dispersible tablet dosage form of Oxbryta is an important advance for people and families affected by this devastating disease, and we are pleased to make this new dosage form available to patients by prescription.
We are grateful to all those involved in ensuring that more sickle cell disease patients who need treatment with Oxbryta have access to it.”
Pros
- They are doing research on a disease which affects the Black community
- Medical companies are always popular with investors
Cons
- They have to wait for FDA approval before producing any new drugs or treatments to the market
5. Carver Bancorp–Best Black Stock in Investment Capital
Carver Bancorp is one of a few Black-owned companies on the stock market worth looking into. They were founded in 1948, and their headquarters is in New York City.
They are traded on the NASDAQ under the stock ticker CARV. Carver Bancorp is a holding company for Carver Federal Savings Bank. A group of entrepreneurs in 1948 founded the company.
The group consisted of Black community leaders and Black small business owners. This is important because the United States was still in the Jim Crow era. Blacks had a hard time buying their property and starting their businesses; however, it was necessary.
The country was shrouded in racism, and Blacks often had to band together to create their wealth.
So, it was not uncommon to see Black-owned banking institutions, hospitals, and schools. Today, Carver Bancorp still services minority communities.
The very first branch was opened in Harlem in 1949. Now, they have eight branches and multiple ATM centers.
Their concentration is in low to moderate-income areas. They are dedicated to their mission of helping minorities manage and grow their wealth.
This service to the community helps decrease the wealth gap between Black citizens and White citizens.
The United States Treasury Department has classified this banking institution as a community development financial institution (CDFI). This means they focus primarily on business development efforts and personal lending for poor communities in the US.
They process business loans without bias and offer personal loans to those who may be blocked out by other institutions.
Their contribution is a direct approach to combat corporate red-lining. Red-lining is the practice of segregating communities based on where someone lives.
As a result, entire communities would be blocked from receiving personal loans, real estate loans, or business loans. So, Carver Bancorp made its final mission to fight this practice head-on.
Pros
- Banking institutions are popular within the financial sector
- This publicly traded Black-owned company stocks is one of the oldest institutions on the market
- They are dedicated to community development
- This company has a history you can depend on
Cons
- Investing in the financial sector can be confusing for beginners
- This Black company on the stock market is reliant on rates set by the Federal Reserve
6. Broadway Financial Corp–Best Black Stock in Banking
Broadway Financial Corp is another CDFI. They were founded in 1946 during the Jim Crow era and are currently based in Los Angeles. Banking institutions were highly racist and would not offer loans to Black individuals or businesses.
The founders would not let this deter them. They went against the grain and started their financial institution to serve the communities that needed the most help.
This is Black excellence at its finest. They founded their first headquarters in 1954 by acquiring a building in Los Angeles.
The original office was burnt down during the Rodney King riots in 1992, and they erected a new site three years later. Since its inception, the bank has been dedicated to servicing low-income and moderate-income families with multiple deposit options and loan products.
Broadway Financial Corp is the holding company for Broadway Federal Bank. As of 2020, the company has three branches and one loan office.
On April 1, 2021, the bank merged with City First Bank and became the largest Black-owned financial institution in the United States.
They have over one billion dollars in assets. When they went public in 1995 and raised $9 million in the capital, they transitioned from a mutual savings bank to a stock savings bank.
These Black-owned stock companies can be found trading on the NASDAQ under the ticker BYFC. In the company’s recent reports, net income is $426 thousand, and grant and fee income increased by $496 thousand.
Operating expenses were reported at $1.7 million due in large part to the merger. The merger affected the balance sheet in a significant way.
They have more assets now, but numbers like a net loss of $2.6 million during the nine months ended September 30, 2021, make the balance sheet look like the company is operating at a loss.
During the second quarter, the company accepted a grant of $1.8 million, which was offset by $207 thousand in merger costs and a change in estimates of income tax expense.
Pros
- This Black-owned company on the stock market is one of the oldest financial institutions in America
- Their recent merger makes them even bigger than before
- This is a stable Black-owned stock to invest in
Cons
- After their merger, it looks like they’re operating at a loss
7. Axon Therapeutics–Best Black Stock in Biopharmaceuticals
Axon Therapeutics is the next Black-owned publicly-traded company on our list. Axon is a biopharmaceutical company focused on novel treatments for central nervous system conditions. The conditions they treat have limited treatment options.
Their mission is to create therapeutic options that improve patients’ lives in a meaningful way. They also treat Major depressive disorder, Alzheimer’s disease, migraines, narcolepsy, fibromyalgia, and help with smoking cessation.
You can see all their science on their main website. When the FDA approves new medication for diseases, they treat the stock will always rise.
They are traded on NASDAQ under the ticker AXSM. Recently, the company’s stock rose amidst announcements that several of their drugs encountered problems with the FDA.
Its pending new drug application with the FDA was focused on its AXS-05 drug candidate. The company revealed two problems with the analytical methods related to the drug. Amidst these worries, many analysts still rate the company as a buy. There is a bullish outlook on this stock.
Pros
- This company is a good investment to diversify any portfolio
- Medical companies are always in demand
- They are doing research that no one else does–this company is unique
Cons
- In order to continue growth and high valuation, the company must get their treatments certified by the FDA which often takes years
- It could be a few years before the company reaches a profit from their research
8. American Shared Hospital Services–Best Black Stock in Medical Equipment
American Shared Hospital Services is another medical company. They focus on the technical side of the medical industry; they provide equipment to hospitals and medical centers. The company was founded in 1980 and incorporated in 1983.
They have multiple financing options for medical institutions that might not regularly afford the newest technology.
They specialize in leasing proton beam radiation therapy, radiosurgery, and Intensity Modulated Radiation Therapy (IMRT/IGRT) equipment. They are also the world leader in Gamma Knife unit ownership.
American Shared Hospital Services trades on the NYSE under the ticker AMS. In December 2021, they announced a change to their board of directors.
After the changes to the board of directors, they now have five directors. In their most recent announcement of financial results, there were a few key highlights.
The company had $4 million in revenue in the quarter ending September 30, 2021. Operating income for the third quarter was $186 thousand, and net income was $33 thousand.
They face a lingering loss in revenue from COVID-19. They are currently operating at multiple losses in areas like revenue and net income from previous quarters in 2020.
Pros
- This company can share in the profits of the medical industry without being a medical company
- There is little research required for developing new equipment for hospitals
- They see profits annually without waiting for the FDA
- Their revenue is very high
Cons
- They are currently operating at a loss due to COVID
9. Citizens Bancshares Corporation–Best Black Stock in Finance
Citizens Bancshares Corporation is our final Black-owned stock. It has stood for 100 years.
They recently celebrated their 100 year anniversary in 2021. The company was founded in 1921. They have provided access to financial resources in communities that would not usually be serviced.
They were built on a legacy of vision, courage, and honor. In 1919 the “Fervent Five” pooled their knowledge, resources, and vision to create a financial institution dedicated to the love of their community.
They were five Black businessmen. This goes back to the legacy of other Black entrepreneurs founding their businesses in Black townships.
The Black Wallstreet was a community of like-minded Black entrepreneurs who built banks, established schools and hospitals, and serviced their communities when White citizens viewed them less.
This strength of society is the legacy Citizen’s Bancshares Corporation was founded upon. They wanted their clientele to have access to the American Dream.
This community bank was founded in Atlanta and headed by Heman E. Perry. They focused on the importance of equality in financial services, homeownership, fiscal responsibility, and thriftiness.
Chairman of Citizen Bancshares Corporation, Ray Robinson, said, “The story of Citizens Trust Bank is extraordinary. We are extremely proud of our bank’s mission. It continues to be the bedrock of the bank’s commitment and long-term impact.” This Black company is publicly traded under the stock ticker CZBS.
Citizen’s Bancshares Corporation reports their total revenue as $16,467 million and non-interest expense as $13,776 million.
Their pretax income was $2,854 million. Analysts haven’t weighed in on their soundness, but this is a longstanding company with a stellar history in the community. Where COVID-19 has put many companies out of business, CZBS has stood firm.
Pros
- They are the oldest Black stock traded on the stock market
- They provide financial services to underserved communities
- Their revenue is high and profits are looking good over pretax income
- Financial stocks are sound investments for stabilizing a portfolio
Cons
- The Federal Reserve controls their interest rates
- Many new investors will not understand the complexity of financial markets
- Analysts haven’t given their opinion on the company recently
Importance of Investing in Minority Owned Business to Close the Wealth Gap
With all these options, anyone should be able to find Black stocks to invest in. Unfortunately, the possibilities are slim considering the United States’ longstanding history of systemic racism. There are only nine companies we found, but there could be more in the near future.
Disparities between black households and white households when it comes to stock ownership could soon be remedied.
Joe Cecala is in the works of creating a black-owned stock market called Dream Exchange. The Dream Exchange would be the first black stock market. This is a direct approach to closing the wealth gap amongst Americans.
With African-American families earning less than 15% of caucasian families, this seems like an honest approach to curing the wealth gap. He debunked many myths about investing in stocks in a recent interview with Complex magazine. Starting his stock market will have a direct impact on Black business stock owners.
He has been working alongside William Ellison—a founder of a private equity firm called Cadiz Capital Holding. Though he is no longer part of the project, his help left a lasting impact. Now, the founding group is focusing on expanding opportunities for capital providers in the minority community.
This list is a comprehensive list of Black-owned stocks you can invest in today. Investing in the stock market is the traditional way to build generational wealth. When we mention the wealth gap, it is a means of defining the disparity between families in the United States.
Some people are taught to invest and save while others are forced to survive check to check. By investing in these companies, you are taking direct action to improve living conditions for minorities and advance the state of living for Black America.
You will also be doing yourself a favor if you’ve never invested in the stock market. This is traditionally the best way to build wealth—by investing. When you invest in any company on the stock market, you take part in the ownership of the company.
So you too can own a piece of Wall Street by investing in these companies. This will give you something to build your legacy and pass it down to your children and grandchildren.
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