5 Canadian artificial intelligence stocks to buy

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5 Canadian artificial intelligence stocks to buy

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 5 Canadian artificial intelligence stocks to buy
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Highlights 

  • One of the below AI companies agreed to develop learning solutions for Lululemon, an athletic apparel retailer.
  • Another of the mentioned companies launched and designed an app to be used by the customer of Lightspeed, a Montreal-based e-commerce and point-of-sale software provider.
  • Among them, the highest ROE posted was 381.55 per cent.

The emergence of artificial intelligence (AI) and machine learning (ML) has been on the rise given the need to handle big data for decision-making across industries and sectors. The applications of AI are used in sectors like finance, healthcare, supply chain, etc.

Many market analysts believe companies developing AI-based solutions and applications will grow in the future.

The S&P/TSX Capped Information Technology Index posted a year-to-date (YTD) return of 33 per cent, whereas one of these companies posted a YTD return of 155 per cent.

On that note, let us explore some of the Canadian AI companies.

  1. Constellation Software Inc. (TSX: CSU)

The AI-based software company develops software for both the private and public sectors. The software developed by the company is used across sectors and industries.

Constellation Software is scheduled to pay a quarterly dividend of US$ 1 on October 8, 2021. The three-year dividend growth rate stood at 25.99 per cent on average, and the dividend yield was 0.22 per cent.

Constellation Software, in the second quarter of the fiscal year 2021, posted total revenue of US$ 1.2 billion, up 35 per cent Year-over-Year (YoY). Its net income attributable to common shareholders in the quarter was US$ 88 million. On a per-share basis, net income was US$ 4.16 in Q2 FY21.

The stock price of the technology scrip expanded by 48 per cent over the past year and closed at price of C$ 2,192.95 on September 8, 2021.

Constellation Software held earnings per share (EPS) of 20.45, return on equity (ROE) of 40.33 per cent.

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  1. Fobi AI Inc. (TSXV: FOBI)

Fobi AI is a company with a market cap of C$ 297.04 million on September 9. It provides artificial intelligence (AI) based on real-time data and other analytical solutions to drive customer engagement.

The senior leadership of Fobi AI, in its latest report, announced its integration with Lightspeed Commerce Inc., a leading company providing a platform for merchants to engage with customers. Fobi AI launched and designed the Fobi App to be used by the customers of Lightspeed.

On September 8, the stocks of Fobi AI were trading 891 per cent above their 52-week low of C$ 0.23 and closed at C$ 2.28 on the same day. These stocks surged up by a whopping 850 per cent over the past year.

On the valuation front, the AI company posted an ROE of 381.55 per cent.

Also Read: 5 best TSX AI & virtual reality stocks to buy in September

  1. Kinaxis Inc. (TSX: KXS)

This tech company combines AI with human intelligence, thereby integrating modern and digital supply chain processes. Kinaxis develops a cloud-based platform that makes the process faster across the industry.

In Q2 FY21, Kinaxis posted total revenue of US$ 60.05 million, down from US$ 61.37 million in Q2 FY20. Out of this total revenue, SaaS revenue was US$ 42.3 million in Q2 FY21, increased by 18 per cent YoY. Its adjusted EBITDA in Q2 FY21 was US$ 7.14 million.  

As per the latest report, Kinaxis has partnered with Exelixis, a biotechnology company, to strengthen the supply chain process for on-time delivery of cancer drugs.

The stock price of Kinaxis increased by only five per cent over the past year and by 10 per cent on a year-to-date (YTD) basis. At the market close on September 8, the stock price of the company was C$ 199.

Kinaxis held a market cap of C$ 5.4 billion and a P/B ratio of 14.48 on September 9.

 

Also Read: Why are Emerging Tech Stocks C3.ai & Facedrive Trending?

 

  1. GoldSpot Discoveries Corp. (TSXV: SPOT)

The company deploys artificial intelligence (AI) and machine learning (ML) based concepts and strategies in exploration for the mining industry. The AI-based software designed by GoldSpot is believed to improve efficiencies and success factors in the exploration of resources.

GoldSpot posted an ROE of 54.65 per cent, a price-to-earning (P/E) ratio of 4, and a return on assets (ROA) of 47.14 per cent (at the time of writing).

The consulting revenue posted by GoldSpot Discoveries was C$ 2.49 million in Q2 FY21, increased by 166 per cent YoY. Its net income and comprehensive income was C$ 12.71 million in Q2 FY21, up 348 per cent YoY.

The company's stock price ballooned 500 per cent over the past year and by 155 per cent on a Year-To-Date (YTD) basis. On September 8, it closed at C$ 1.02.

  1. Docebo Inc. (TSX: DCBO)

The C$ 3.37 billion market cap tech company develops a cloud-based platform with real-time tracking. Docebo debuted on the Toronto Stock Exchange with the successful launch of its initial public offering (IPO) on October 8, 2019.

Over the past year, the stock of Docebo expanded by close to 134 per cent, but it only increased by 41 per cent on a quarter-to-date (QTD) basis. It reached its 52-week high of C$ 112.41 on September 7 and closed at C$ 103.09 on September 8.

Docebo posted revenue of US$ 25.6 million in Q2 FY21 and incurred a net loss of US$ 7.2 million in the same period. The company in Q2 FY21 signed a contract with Lululemon, an athletic apparel retailer, to develop learning solutions for Lululemon.

The technology scrip held a P/B ratio of 13.89 and a debt-to-equity (D/E) ratio of 0.02 (at the time of writing).

Bottom line:

The integration of human cognition to analyze large sets of data using artificial intelligence is believed to act as a growth driver across sectors.

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