Companies are trying to do more with less -- just ask any wage earner who survived the past year's layoffs but must now do the work of two. Of course, too much cost-slashing can hurt profits. Stock investors can discern among companies that are getting fit and those that are wasting away by watching a measure called return on capital.

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Return on capital is a company's profit as a percentage of the capital entrusted to it by investors, including the ownership stake of stockholders and the long-term debt owed bondholders. Companies that truly do more with less raise their returns on capital and position themselves for profitable growth once business conditions improve.

I recently searched S&P 500 members for firms whose returns on capital for the past year and most recent quarter were greater than their five-year average. There were 119 of them. Below are three that have modest share prices relative to forecast earnings and that pay dividends.

Becton Dickinson

Becton Dickinson makes medical and surgical equipment, including needles, syringes and scalpels, and tools for diagnosing diseases and researching cures. More than half of sales come from overseas. The company's goods aren't especially sensitive to economic cycles, so sales are expected to increase 7% during the fiscal year ending September. The stock's dividend yield of 1.9% looks affordable, considering Becton is expected to produce free cash this year equal to 7% of its current stock market value, rising to 9% over the next three years. Shares sell for a reasonable 15 times earnings.

Flowserve

Flowserve makes pumps, valves and seals, mostly for energy, chemical, power and water companies. More than two-thirds of sales come from outside North America. Last year, oil companies spent less on large projects, reducing Flowserve's sales, earnings and bookings, but the company's lucrative after-market products, which historically have brought in about 40% of sales, have helped keep margins stable. Operating cash flow for the year topped $400 million, and management spent $100 million of that on dividends and share repurchases, and just over $100 million on capital investments. In particular, the company is putting money into nuclear and water desalinization products, which are expected to be big sales drivers in coming years. Shares sell for 15 times earnings and the recently raised dividend makes for a 1.1% yield.

Molson Coors Brewing

Molson Coors Brewing trades at just 12 times earnings. That's likely owed to the company's muted growth prospects; Molson gathers most of its sales from the U.S., Canada and the U.K., beer markets which are already saturated. A joint venture with SABMiller should save Molson Coors more than $200 million a year in expenses by the time the unit is fully integrated in 2011, according to Ann Gilpin, a stock analyst with Morningstar. That's more than one-third of the company's earnings last year. However, present increases in earnings are being masked by currency weakness in the U.K. and Canada. Shares carry a 2.2% dividend yield; that and the cost improvements should appease stockholders while management devises a plan to invest in faster-growth markets. One downside for investors: The company has two share classes, a set-up that allows the Molson and Coors families to hoard voting privileges and leave other share owners with little say.