Public market valuations can feel very out of sync in the technology and telecom sector where privately held, venture-backed money-losing startup “unicorns” are worth $1 billion or more and refuse to go public. Meanwhile, in the public markets, shrinking old-line businesses like Xerox (XRX) still outrank buzzy software companies like Facebook (FB) or Salesforce (CRM).
Investors value growth in all sectors, but in the technology sector, it is king. That’s why the market currently values Facebook, No. 85 on the Fortune 500 list, at $332 billion, despite its mere $18 billion in revenue. Compare that to HP Inc., which brought in $103 billion in revenue last year but carries a market capitalization of just $20 billion.
In addition to HP, Facebook is more valuable than telecoms like AT&T and Verizon, as well as IBM, Cisco, Oracle, Danaher, the former Time Warner Cable, and Xerox—all of which earn more revenue than Facebook and rank higher on the Fortune 500 list. But investors value growth, which Facebook has consistently delivered, and they value profits, about which Facebook has also been consistent. The company jumped 85 spots on the list this year.
With that context in mind, here are the top 20 technology companies of the 2016 Fortune 500, in order of their rankings:
With $233 billion in revenue last year, a 28% increase over the prior year, Apple (AAPL) continues to dominate the U.S. technology industry, climbing two spots to the No. 3 position on the overall Fortune 500 list.
13. Verizon Communications
As Verizon (VZ) invests in content to move beyond its role as a “dumb pipe” telecom company, it jumped two spots on the overall Fortune 500 list to number 13.
The notoriously unprofitable e-commerce player turned a profit last year. More importantly, Amazon (AMZN) learned from its disastrous foray into smartphones and proved it can do hardware with the successful Alexa smart home unit. It is now the 18th largest company in the United States.
The computer giant (HPQ) fell one spot to number 20 this year. Next year, the company will appear as two entities: HP Inc. and HP Enterprise, due to its split.
Revenue at Microsoft (MSFT) grew by 8% last year, causing the Redmond, Wash.-based software giant to jump six spots to No. 25 on the Fortune 500 list.
Shrinking revenue caused IBM (IBM) to slip seven spots this year.
The company formerly known as Google (GOOGL) underwent bold restructuring last year, but it didn’t change much from investors’ perspectives: The company is worth nearly $500 billion, and its revenue grew by 16%.
Despite a slight dip in revenue, Comcast (CMCSA) managed to jump six spots on the Fortune 500 list.
Intel’s (INTC) business also shrank in 2015, but the chip maker still managed to climb one spot to No. 51.
54. Cisco Systems
Oracle (ORCL) had a year of flat sales, shrinking profits, and mediocre stock performance.
EMC (EMC) managed to squeeze a 28% growth in profits out of a 1% growth in revenue.
116. Time Warner Cable
158. Jabil Circuit
Here are the rest of the technology companies on the Fortune 500 list, with their rankings:
164. Thermo Fischer Scientific.
173. Micron Technology
187. DISH Network
194. Western Digital
219. Texas Instruments
230. Cognizant Technology Solutions
233. Computer Sciences
284. Liberty Interactive
292. Charter Communications
295. Applied Materials
308. Priceline Group
333. Level 3 Communications
399. Cablevision Systems
443. Windstream Holdings
451. Motorola Solutions
461. Frontier Communications
487. Booz Allen Hamilton Holding
491. Lam Research
496. Telephone & Data Systems
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