Did you know that Canadian companies dominate several global markets?
From e-commerce to asset management and banking, Canadian companies are rapidly becoming global leaders.
Canada has always had a dynamic business community, but today’s Canadian juggernauts are really punching above their weight globally. In this article, I will explore three such companies that are publicly traded, meaning you can invest in their shares.
Shopify
Shopify Inc (TSX: SHOP) is the global leader in e-commerce shopping cart platforms. It is not the biggest e-commerce company, but it is the biggest company in its specific e-commerce subsector.
An “e-commerce shopping cart” is an application that lets you sell things to people on your own self-hosted online store. Typically, a shopping cart will include a website builder, a product listing feature, and some payment features. Shopify has all three features just mentioned and more. Recently, it ventured into using generative AI to help vendors quickly write compelling, high-converting product descriptions. That feature was a smash hit, being very well reviewed by customers.
Shopify’s most recent quarter was a pretty significant success. In it, the company delivered:
- $1.7 billion in revenue, up 31%.
- $55 billion in gross merchandise volume, up 18%.
- $835 million in gross profit, up 27%.
- A 50% gross margin.
- $146 million in adjusted operating income, up 9%.
- $97 million in free cash flow, up from a loss in the prior year quarter.
It was a strong period of growth for Shopify, which continues its march to becoming one of the world’s e-commerce leaders.
Brookfield
Brookfield Corp (TSX: BN) is another Canadian company that dominates an industry globally: alternative asset management. It is the biggest company in the industry by market cap. Brookfield Corp. alone is larger than the Carlyle Group, and the various Brookfield companies combined are larger than KKR & Co. This makes Brookfield the global leader in its industry.
Why is Brookfield so dominant globally?
First, it has a great reputation, having earned praise from the likes of Mohnish Pabrai and Howard Marks.
Second, it has a long history stretching back over 100 years, giving it ample amounts of experience to draw on.
Third and finally, it has made some lucrative deals over the years that have really paid off. For example, in 2018, it bought the nuclear power plant company Westinghouse and later sold most of the shares for a 700% return!
TD Bank
The Toronto-Dominion Bank (TSX: TD) is one name you might be surprised to see on this list. Most Canadians know TD as one of Canada’s big six banks, a fairly conventional financial services company. However, there is much more to TD than that. In addition to being a big player in Canadian banking, it’s also growing increasingly dominant in the U.S. financial services market. It is the ninth largest bank in the United States. It is the largest shareholder in Charles Schwab, the country’s biggest discount brokerage. The Canadian bank already earns 40% of its profit south of the border. This year, TD increased its U.S. footprint by buying out the investment bank Cowen. If it keeps making such deals (for reasonable prices), it may some day become one of the world’s most powerful financial services companies.
