Best International Companies to Own: 2025 Edition

Investors from almost every part of the world exhibit a certain amount of home bias: the tendency to prefer domestic equities to international ones. This makes sense. Investors are likely more familiar with these brands and, consequently, are more comfortable putting their money toward them.

But in today’s investing world, “adding international exposure is one of the first steps toward a diversified portfolio,” according to Morningstar portfolio strategist Amy Arnott. If, for example, the US dollar weakens, exposure to European or Asian equities can soften the impact.

With that in mind, how can stock investors tackle international investing?

First, it’s important to remember that at Morningstar, we don’t view investing through the lens of daily price movements or hot tips. We see owning a single stock as similar to owning a small part of the company or the underlying business itself.

Consider the amount of effort we devote to researching and comparing options before buying a car. It tends to be a lot, and it tends to work out well for our needs, exceeding expectations and providing a reliable form of transportation. This is the same approach we take to buying a stock.

One of the best ways to identify high-quality companies is by checking out the Morningstar Economic Moat Rating, which assesses a company’s competitive advantage. The term “economic moat” was coined by Warren Buffett, who said, “The key to investing is … determining the competitive advantage of any given company and, above all, the durability of that advantage. The products or services that have wide, sustainable moats around them are the ones that deliver rewards to investors.”

We used the moat rating as a starting point to compile a list of the best companies you can own. As the best companies in our coverage, they have wide economic moat ratings, the strength of their competitive advantages is either steady or increasing, they have predictable cash flows, and they allocate their capital effectively. (You can learn more about this methodology here.)

Here are the 37 companies based outside of the United States, but available to US investors, that made the cut.

Industrials is the most represented sector on this list with 11 companies. Consumer defensive and healthcare are close behind, with 10 and six, respectively.

A note of caution: This list is not a call to action for you to buy all these companies immediately. Rather, it is a list of stocks you should keep an eye on and look for attractive entry points. Even the greatest company can be a bad investment if you overpay, and some of the firms on this list are currently overvalued.

That said, we note four stocks on the list that earned Morningstar Ratings of 5 stars as of Dec. 10, 2025, meaning they are undervalued according to Morningstar’s fair value estimates:

• Denmark-based Coloplast CLPBY, a medical instrument and supply company
• UK-based RELX RELX, a global provider of business analytics and decision tools
• Canada-based Thomson Reuters TRI, which provides business information services
• China-based Yum China Holdings YUMC, the country’s largest restaurant chain

Here’s what our analysts have to say about these four undervalued names from the list.

Coloplast

Based in Denmark, Coloplast is a leader in global ostomy and continence care. The firm has made inroads into the concentrated urology and fragmented woundcare markets, but it remains a peripheral player there. In contrast, Coloplast has a long record of consistent and meaningful innovation in ostomy and continence care that has led to a dominant position in Europe and growth in the US. Since 2008, the firm has done an admirable job of trimming its cost structure as it focused on profitable growth. After shifting the majority of its production to Hungary, China, and Costa Rica, Coloplast now enjoys a gross margin that beats that of rival Convatec by more than 1,150 basis points. Currently, Coloplast is altering its emphasis to enhance growth by entering new geographies, with an emphasis on the United States.

We’ve long been impressed with the firm’s ability to provide thoughtful, user-friendly improvements to its ostomy and intermittent catheters, which have won over end users. Most recently, Coloplast has upped its game with the incorporation of more sophisticated technology in its supplies and corresponding investment in clinical studies to demonstrate the value of these improvements. For example, new intermittent catheter Luja empties the bladder more fully to reduce the risk of urinary tract infections.

We are less keen on Coloplast’s woundcare segment, where competitive product launches abound. Coloplast’s woundcare portfolio had historically centered on low-tech foam, leaving the firm more vulnerable as advanced woundcare has moved toward hydrofiber and antibacterial products. Further, as with all competitors in this market, Coloplast faces relatively low switching costs for customers. Additionally, the majority of woundcare products are sold to providers (versus directly to patients themselves), which means there is greater pricing pressure from group purchasing organizations and government-sponsored tenders. However, Coloplast’s acquisition of Kerecis puts the firm in a strong position to compete in the fast-growing biologic wound care niche with its unique fish skin therapies.

RELX

RELX, based in the UK, is a global provider of business information, analytics, and decision-making tools for professionals in various industries. It generates revenue mainly by creating and selling access to curated information databases, analytics, and journals. In addition, RELX organizes major events such as trade shows and conferences.

Nearly all information and analytics products are delivered digitally, print is now a minor part of the business. Offerings are sold mainly by subscription, which accounts for around 55% of revenue. However, the majority of the remaining 45% transactional revenue is under long-term contracts with volumetric elements, so essentially recurring in nature.

The core tenet of RELX’s strategy is to grow its portfolio of information-based analytics and decision-making tools to help its customers be more productive and make better decisions in their day-to-day workflow. The company also aims to expand into higher growth adjacencies and geographies organically and through selective acquisitions. Last, RELX focuses on continuous process innovation to manage cost growth below revenue growth.

The company does not give hard numbers for its strategic targets. Instead, the company aims to deliver an improving revenue and earnings growth profile and higher returns. In our view, investors can typically expect mid-single-digit organic revenue growth and a 10- to 40-basic-point increase in adjusted operating margin each year in what we think is a low-uncertainty business.

Thomson Reuters

Thomson Reuters is a leading provider of legal, tax, accounting, and risk information services and software, predominantly in the US. The company’s content-driven technology helps customers with three main tasks: (1) finding answers to complex industry-specific questions; (2) creating work products such as legal documents, tax returns, and compliance reports; and (3) managing risk, such as deciding whether to accept a new customer or use a certain vendor. Additionally, its Reuters News business is one of the world’s leading independent news agencies.

The company’s strategic goals have been consistent for the past several years. First, prioritizing investment in its best businesses and opportunities, the so-called “Strategic Seven.” This includes flagship products such as Westlaw and UltraTax CS, and newer additions to the portfolio like SurePrep and CoCounsel. Second, increased investment in product innovation, particularly around generative artificial intelligence. Finally, portfolio optimization. Thomson has sold its multi-billion-dollar stake in the London Stock Exchange Group over recent years, which has enabled it to acquire several fast-growing portfolio-adjacent businesses and divest some slow growers while maintaining a pristine balance sheet. We expect more bolt-on acquisitions in the coming years.

By 2026, Thomson is targeting organic revenue growth of 7.5% to 8.0% including 9.5% for the Big Three segments combined (legal professionals, corporates, and tax and accounting professionals). In addition, free cash flow should be at least $2 billion, and the EBITDA margin is expected to increase 50 basis points over 2025.

Yum China

The Chinese restaurant sector continues to face headwinds from the real estate downturn and a lack of significant economic stimulus, affecting consumer spending. In this environment, we recommend that investors focus on companies that possess the scale to be more aggressive on pricing, as value-oriented players typically perform better during economic downturns. A healthy balance sheet is also crucial.

Yum China is well-positioned to gain share in the fragmented $700 billion Chinese restaurant market. Despite the current headwinds, we remain confident in the long-term growth of the quick-service restaurant segment, driven by three secular trends: (1) the increasing number of office-based workers, (2) rising disposable incomes, and (3) shrinking family sizes.

Yum China’s scale advantages translate into competitive pricing and consistent quality and service, building trust with consumers seeking reliable dining experiences. This positions the company to capture share in a market where chained restaurants represent only 20% of industry spending, compared with a 35% global average and 60% in the US.

While nascent opportunities like Lavazza and Huang Ji Huang have received fewer mentions recently, likely due to the economic slowdown, we believe they still offer compelling long-term prospects. This stems from their differentiated offerings, growth potential upon economic recovery, and ability to leverage the group’s in-house supply chain to reduce food costs.

We expect the company to achieve its 2024-26 targets, which include: (1) average annual net unit growth of 1,800 restaurants, (2) double-digit earnings-per-share compound annual growth rate, and (3) $1.5 billion in annual shareholder returns. While acknowledging the potential for further economic slowdown and tempered restaurant market growth, management plans to gain share by: (1) expanding into lower-tier cities lacking a KFC presence; (2) broadening Pizza Hut’s reach into cities with KFC but not Pizza Hut, while converting underperforming units to the lower-priced Wow format, and (3) accelerating franchisee expansion in strategic locations like highway centers, hospitals, and college campuses.

Editor’s Note: This article is based on the 2026 edition of Morningstar’s Best Companies to Own. Find the full list of companies and read about our selection methodology.