Wall Street bankers and lawyers often win big when a company buys growth, acquiring another company to expand its sales. But there s often a loser in these deals: the investor. A 2007 study by the Boston Consulting Group found that more than 58 percent of acquisitions between 1992 and 2006 led to a declining stock price for the companies doing the buying, with deals worth over $1 billion losing twice as much money for shareholders as smaller ones.

Some savvy investors say there s a safer, more rewarding way to find winners: Look past the headline-grabbing acquisitions, and go for companies that generate internal growth. Food distributor Sysco, for example, plows cash into new distribution centers, while ketchup maker H.J. Heinz funds marketing campaigns to build its brands. Others find ways to exploit opportunities in fast-growing markets like China or India. As a bonus, companies able to find so-called organic growth often possess other desirable traits, such as top-notch management, market dominance and a healthy balance sheet, says Virginie Maisonneuve, who leads the global stocks team at money manager Schroders. Indeed, she says the strategy goes to the heart of what we look for.

Of course, a company can do a lousy job growing on its own charging into a new area without first figuring out how to make money, for example, or straining its balance sheet with excess spending. Robert Zagunis, a comanager of the Jensen Portfolio mutual fund, keeps an eye on such measures as return on equity and return on invested capital to make sure a firm is funding growth efficiently. As bargains become increasingly difficult to find after the market s 2009 surge, some investors say these organic growers offer more stability than many of the riskier stocks that led the rally.

These are some of the cheapest and safest stocks in the market, says Channing Smith, vice president at Capital Advisors, which manages $750 million. Plus, companies that can grow on their own have an added allure: They often become takeover targets themselves.

These companies are finding ways to grow without big acquisitions.

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The Chinese online ticketing company benefits from increased Internet travel bookings, an area that s just beginning to take off in China.

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The food distributor uses its strong cash flow to invest in initiatives to make its deliveries more timely and efficient while boosting market share in a fragmented industry.

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Price increases have helped the ketchup maker generate 17 consecutive quarters of organic sales growth. Heinz has lagged behind the broader market in the rally, so analysts say it could have less downside if the market stumbles.