4 best Canadian metaverse stocks to add to your portfolio

Highlights

• One of the companies mentioned here partnered with London’s Metropolitan Police Service to integrate its digital forensic services
• The highest one-year stock return was 598 per cent among the below companies
• The consulting revenue of one of these companies grew by 166 per cent YoY.

Metaverse typically means the convergence of physical and virtual space. Hence, a futuristic virtual reality can be imagined by 3D virtual spaces using the internet and augmented reality.

These metaverse companies represent the technology sector. Even in Canada, some of the metaverse stocks are gaining popularity. The application developed by one of the metaverse companies mentioned in this article is being used by a leading e-commerce company. Moreover, London’s Metropolitan Police Service collaborated with one of these companies to integrate its digital forensic services.

The S&P/TSX Capped Information Technology Index posted a YTD return of 32.85 per cent. It was outperformed by the YTD return of 155 per cent posted by GoldSpot Discoveries Corp.

Considering that, let us explore some of these metaverse stocks.

1. POET Technologies Inc (TSXV:PTK)

This semiconductor manufacturing company integrates photonic and electronic devices applied in the Internet of Things (IoT), data centers, etc. POET Technologies held a market cap of C$ 393.71 million and had 351.53 million outstanding shares.

On June 30, 2021, the stock price of POET Technologies reached its 52-week high of C$ 1.58. It traded 29 per cent below this level and closed at C$ 1.12 on September 2, 2021. On this day, it also traded 143 per cent above its 52-week low of C$ 0.46 (December 1, 2020).

POET Technologies posted sales of US$ 0.2 million in the second quarter of the year fiscal 2021. Its net loss was US$ 4.21 million in the same quarter.

The company held a price-to-book (P/B) ratio of 14 and debt-to-equity (D/E) ratio of 0.04 on September 2.

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2. Magnet Forensic Inc (TSX:MAGT)

The C$ 489.65 million market cap company develops investigative software catering to IoT devices and mobile devices. Magnet Forensic successfully launched its initial public offering (IPO) on April 28, 2021, and got listed on the Toronto Stock Exchange (TSX).

Stocks of Magnet were priced at C$ 52.50 at the market close of September 2. On this day, these stocks traded 151 per cent above their 52-week low price of C$ 20.91 (April 28, 2021). It returned close to 106 per cent on a quarter-to-date (QTD) basis.

The revenue of Magnet was US$ 16.5 million in Q2 FY21, up 42 per cent Year-over-Year (YoY). Its gross margin was 94 per cent in the same quarter. The company posted a return on equity (ROE) of 13.02 per cent and a return on assets (ROA) of 7.91 per cent.

The senior leadership of the technology company commented that it partnered with London’s Metropolitan Police Service to integrate its digital forensic services.

Also Read: Top 10 software stocks to buy in Q3 2021

3. Fobi AI Inc (TSXV: FOBI)

Fobi develops artificial intelligence (AI) and IoT devices for retailers to generate real-time data. The company posted an ROE of 381.55 per cent and held a market cap of C$ 222.78 million on September 2.

The stock price of Fobi traded close to 714 per cent above its 52-week low of C$ 0.21 (September 4, 2020) and closed at C$ 1.71 on September 2. The stock price of the company rocketed by nearly 598 per cent over the past year. But it dipped nearly 17 per cent on a year-to-date (YTD) basis.

The company partnered with Shopify for the launch of the Fobi App. This app provides a real-time analytics solution that can be used by the retailers of Shopify who are spread across several countries.

Also Read: 5 robotics stocks to buy in 2021

4. GoldSpot Discoveries Corp (TSXV:SPOT)

The company uses the concept of machine learning (ML) and artificial intelligence (AI) in the mining industry. GoldSpot held 121.47 million outstanding shares while its market cap was C$ 123.9 million (at the time of writing).

On September 2, the stock price of GoldSpot traded 538 per cent above its 52-week low price of C$ 0.16 and closed at C$ 1.02 on this day. Over the past year, the stock expanded by 451 per cent.

GoldSpot posted an ROE of 54.65 per cent, ROA of 47.14 per cent, and its earnings per share (EPS) was 0.26.

In Q2 FY21, the consulting revenue of GoldSpot was up 166 per cent YoY, and its net income was up 348 per cent YoY.  

Bottom line:

The use of virtual and augmented reality improves the predictability of the future and but it cannot completely replace reality. While the space is expected to grow, it is yet to be fully embraced.