5 Canadian stocks that are outperforming markets

Highlights

• The highest revenue growth among the companies mentioned was 183 per cent YoY.
• One of these companies’ five-year dividend growth stood at 16.85 per cent.
• Many of these companies delivered positive financial results in the quarters of FY21.

Many stocks, despite trading at high price points, do not fetch investors positive returns. Many of the high-priced stocks are not pocket-friendly to investors either.

However, some hidden gems currently are trading at lower price bands and have incredible potential to grow. One of these companies posted revenue growth of 183 per cent, while another company delivered a stock return of nearly 2,367 per cent over the past year.

Here, we explore such stocks priced under C$10 but with incredible potential to expand further.

1. High Tide Inc (TSXV:HITI)

This C$ 482.6 million market cap company manufactures and distributes recreational cannabis across Canada. High Tide maintains a close connection with its customers and delivers products through its e-commerce platform.

The stock price of this cannabis company closed at C$ 9.19 on September 1, 2021, and the stock traded 46 per cent above its 52-week high of C$ 16.95 (February 8, 2021). Over the past year, the stock price rocketed by 258 per cent.

High Tide posted revenue of C$ 40.9 million in the second quarter of the fiscal year 2021, up from C$ 20.6 million in Q2 FY20, increasing by 99 per cent Year-over-Year (YOY). Its adjusted EBITDA was C$ 4.7 million in the same quarter. During the quarter, the company opened 13 new cannabis stores in Alberta and Ontario.

The management of High Tide believes that the recent acquisitions of Daily High Club and another company will generate growth in EBITDA and revenue going forward.

The company posted a price-to-book (P/B) value of 4.53 on September 1.

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2. Voxtur Analytics Corp. (TSXV:VXTR)

This real estate company provides analytics solutions, tax solutions, and other real estate-related services to government agencies and lenders. Voxtur Analytics held outstanding shares of 457.07  million and a market cap of C$ 370.23 million on September 1.

Stocks of Voxtur Analytics closed at C$ 0.81 on September 1. These stock prices ballooned by 227 per cent over the past year. However, it increased by nearly 78 per cent on a year-to-date (YTD) basis. On March 2, 2021, it reached its 52-week high of C$ 1.43.

As per the latest update, one of Voxtur’s subsidiary companies acquired Xome Services LLC, a valuation management service company.

Voxtur posted revenue of C$ 14.46 million in Q1 FY21, which grew by 183 per cent YoY, whereas the adjusted EBITDA was C$ 1.16 million in the same quarter. The company held a P/B ratio of 2.58 and a debt-to-equity (D/E) ratio of 0.21.

Also Read: 5 shockingly cheap TSX dividend stocks to buy under C$10

3. Thunderbird Entertainment Group Inc. (TSXV:TBRD)

The C$ 217.63 million market cap group is a production and multimedia company curating shows and programs for families and youth and also content with regards to comedy and drama. The investors of Thunderbird Entertainment enjoyed a price-to-earning (P/E) ratio of 37.2 and earnings per share (EPS) of 0.12.

In Q3 FY21, Thunderbird Entertainment posted total revenue of C$ 37.7 million, increasing by 27 per cent YoY. Its adjusted EBITDA increased by eight per cent YoY in Q3 FY21. Revenue during the quarter increased across all divisions of the company.

The media company's stock price closed at C$ 4.46 on September 1 and traded nearly 148 per cent above its 52-week low of C$ 1.81 (September 24, 2020). Over the past year, the stock price expanded by 117 per cent, and on a YTD basis it increased by 40 per cent.

4. StorageVault Canada Inc. (TSXV: SVI)

This dividend-paying company provides leasing services, storage solutions and renting space services to its customers. StorageVault held outstanding shares of 371.59 million and a market cap of C$ 2.06 billion (at the time of writing).

StorageVault paid its shareholders quarterly dividends of C$ 0.003 per share on July 15, 2021. The dividend yield was almost 0.2 per cent, and the five-year average dividend growth was 16.85 per cent. Moreover, the company stood with a P/B ratio of 10.11.

StorageVault Canada Inc. posted a total revenue of C$ 51.7 million in Q2 FY21, up from C$ 37.4 million in Q2 FY20. Its net operating income was C$ 35 million in the same quarter.

The stock price of the storage company closed at C$ 5.54 on September 1. On August 30, 2021, it reached its 52-week high of C$ 5.71. The stock price spiked up 81 per cent over the past year.

Also Read: 7 cheap TSX stocks to buy in 2021

5. Cielo Waste Solutions Corp. (TSXV:CMC)

This waste management company collects and transforms construction and municipal waste into renewable energy of high quality and grade. Cielo Waste raised its initial public offering (IPO) on August 3, 2011, and got listed on the TSX Venture Exchange (TSXV).

The company held a market cap of C$ 761.3 million, a P/B ratio of 52.5, and a D/E ratio of 2.11.

As per the latest quarterly report, Cielo Waste acquired a 60-acre industrial land and repaid an existing loan of C$ 12 million. This industrial land also comes with a 31,750 square foot building.

The senior leadership of Cielo stated that the company is reducing its dependence on petroleum, thereby reducing the emissions of greenhouse gases (GHG).

The stock price closed at C$ 1.18 on September 1, and over the past year, the stock price rocketed by nearly 2,367 per cent.

Bottom line:

Despite being priced below C$ 10, these stocks have delivered positive revenue growth on a YOY basis and with little impact of COVID-19 on the company's operations.