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And the Award for Best Canadian Tech Company Goes To …

Mad Money host Jim Cramer keeps referring to Domino’s Pizza, Inc. (NYSE:DPZ) as a tech company that sells pizza. As odd as that sounds, it’s not too far-fetched of a concept when you consider how well Domino’s management has leveraged technology to their advantage, virtually reinventing the carryout pizza business in the process.

When you consider the profound potential for technological disruption across all industries, including those that were once deemed to be insulated from tech advancements, it’s inevitable that another Domino-like company is out there somewhere, just waiting to emerge. Over the course of many years, they’ll stand to reinvent and disrupt their own “non-tech savvy” industries through their own “tech-spertise” (tech expertise).

One Canadian company that stands out with the ability to disrupt its industry internationally and potentially steal market share from the incumbent players. That company, I believe, is Spin Master Corp. (TSX:TOY).

It’s a seemingly simple toy company with a profoundly powerful competitive advantage that’s easy to overlook, especially if you’re an investor who isn’t keen on less-established mid-cap stocks.

While Spin Master is a promising up-and-coming player in the toy industry, I believe it’s more than just a “simple toy company.” In an attempt to channel Jim Cramer, I’m going to go ahead and call the company a tech company that just happens to sell toys.

Despite being a relatively small company relative to the bigger players in the space, most notably Hasbro, Inc., Spin Master has been able to make a huge mark on its industry through its incredibly creative and innovative concepts that were made possible through management’s affinity to invest in cutting-edge tech.

It’s not a mystery as to why Spin Master has been nominated for more TIA Toy of the Year (TOTY) Most Innovative Toy awards than any other toy company. Management has innovation in its veins and is not afraid to spend money on R&D efforts to increase the odds of yielding the next blockbuster toy out of its pipeline.

Hatchimals was a global phenomenon that took the toy industry by storm a few years ago. Sure, the toy was cute, but that wasn’t the main reason for its overwhelming success. It was all about the underlying technology. Hatchimals is a phy-gital (physical-digital) toy that makes use of intriguing robotic technologies to create a genuinely unique experiential product with the ability to fascinate both kids and parents alike.

If you can impress not only your target audience but also a wider one, you’ve got the formula for a surging stock. And while some may think of Hatchimals as a one hit wonder, I’d argue that given the company’s impeccable stewardship and their embracement of tech that there may be many more blockbuster hits in the cards for future holiday seasons.

Moreover, management is keeping an active ear open for innovative new concepts being developed by independent creators. Case in point: Moonlite.

I haven’t even touched on Spin Master’s dominant portfolio of child-friendly apps built for smartphones and tablets. We’ll leave that for a future article, but I’m sure you get the point by now. Spin Master is a tech company that makes toys, and it’s well-equipped to reinvent the toy industry in the same way that Domino’s reinvented pizza delivery.

With the stock trading at just 26 times trailing earnings, I think investors ought to think about backing up the truck today before the stock takes off.

Stay hungry. Stay Foolish.

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Fool contributor Joey Frenette owns shares of Spin Master. The Motley Fool owns shares of Hasbro.

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