The Canadian small cap tech stocks we’ve discovered are poised to outperform in the coming year
SmallCapPower | February 23, 2021: The S&P/TSX Capped Information Technology Index has rallied 11.5% to begin 2021 compared with a 4.8% gain for TSX over the same time. With the roaring twenties of the 2000s expected to bring new technologies such as blockchain, 5G, Internet of Things (IOT), Artificial Intelligence, and Quantum Computing to mass adoption, the Technology Index may continue to outperform the broader market. Today, we have identified four Canadian small cap tech stocks that are poised to outperform in the coming year.
*Share price data and other metrics as of February 19, 2021
QYOU Media Inc. (TSXV:QYOU) – $0.39
QYOU Media is a media company focused on content for ‘Young Indians’ being the approximately 400M 20 to 30-year old’s who are a subset of the Millennial and Gen Z market in India. QYOU Media produces ‘The Q India’, a Hindi-language television channel with a growing VOD content library, with over 800 programs and counting, that is now available to approximately 610M users via 55M television homes with partners including TATA Sky, Airtel DTH & SitiNetworks; 355M OTT users via platforms including MX Player, ZEE5 and Dish Watcho; and 200 million users on mobile and digital platforms including JioTV, Airtel Xstream, SNAP and Chingari. Recently, on February 12, 2021, the Company announced that The Q India had achieved its highest rating ever by the Broadcast Audience Research Council (the Nielsen of India). Additionally, The Q India continues to dominate its youth-focused channel peer group in Time Spent Viewing (TSV) with 69 minutes as compared to its closest competitor, MTV India, with an average TSV of 44 minutes. The Q India has achieved this growth to date with less than 50% of the total distribution footprint of these other youth channels, indicating the strongest performance of all youth channels on a per household basis. The Company anticipates increasing the size of its distribution footprint throughout 2021.
- Market Cap: $115.2M
- YTD-Return: +271.4%
- 30-Day Return: +212.0%
- 30-Day Average Trading Volume: 7,573,400
Wishpond Technologies Ltd. (TSXV:WISH) – $1.98
Wishpond is a provider of online marketing, sales, and analytics solutions for small and medium sized business (SMBs). The Company offers an “all-in-one” marketing suite that provides companies with marketing, promotion, lead generation and sales conversion capabilities from one integrated platform. Wishpond replaces entire marketing functions in an easy-to-use product, for a fraction of the cost. Wishpond serves over 2,000 customers in a wide variety of industries and has grown its sales to $7.8M in 2020, from $2.8M in 2017, which implies an annualized growth rate of 40%. WISH has developed cutting edge marketing technology solutions and continues to add new features and applications with great velocity. The Company employs a Software-as-a-Service (SaaS) business model where substantially all its revenue is subscription-based recurring revenue, which provides excellent revenue predictability and cash-flow visibility.
- Market Cap: $100.6M
- YTD-Return: -3.9%
- 30-Day Return: -16.6%
- 30-Day Average Trading Volume: 147,320
Converge Technology Solutions Corp. (TSX:CTS) – $6.09
Converge Technology is a software-enabled, Hybrid IT solution provider focused on delivering industry-leading solutions and services. CTS’ product offerings include IT solutions such as advanced analytics, cloud, cybersecurity, and managed services offerings to customers across various industries. The Company supports these solutions with talent expertise and digital infrastructure offerings across all major IT vendors in the marketplace. This multi-faceted approach enables Converge to address the unique business and technology requirements for all clients in the public and private sectors. On February 12, 2021, Converge announced that it had acquired Accudata Systems for US$7.5M in cash. Accudata is an IT consulting and integration firm with a 38-year history of providing high-impact IT infrastructure and security solutions and services. Accudata generated revenue of approximately C$89M for the trailing twelve-month period ending November 30, 2020.
- Market Cap: $989.8M
- YTD-Return: +22.5%
- 30-Day Return: -3.8%
- 30-Day Average Trading Volume: 804,910
Pivotree Inc. (TSXV:PVT) – $11.90
Pivotree is a leading global commerce and mobile device management (MDM) services provider including machine learning and Internet of Things (IOT) services. The Company is an end-to-end vendor, supporting clients from strategy, platform selection, deployment, and hosting through to ongoing support. It operates as a single expert resource to help companies adapt relentlessly in an ever-changing digital commerce landscape. Leading and innovative clients rely on Pivotree’s deep expertise to choose enterprise-proven solutions and design, build, and connect critical systems to run smoothly at defining moments in a commerce business. Pivotree serves as a trusted partner to over 170 market-leading brands and forward-thinking B2C and B2B companies, including many companies in the Fortune 1000.
- Market Cap: $294.2M
- YTD-Return: -9.8%
- 30-Day Return: +1.7%
- 30-Day Average Trading Volume: 24,620
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.