2 Stocks That Are Unlikely to Stay This Small Much Longer

Given their solid underlying businesses, healthy growth prospects, and reasonable valuations, I expect these two Canadian small-cap stocks to deliver multi-fold returns over the next 10 years.

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Small-cap companies will have a market capitalization between $300 million and $2 billion. Given their smaller size, these companies will have fewer resources to weather adverse economic conditions, thereby making them riskier investments. However, these companies have a vast scope for expansion, thereby offering higher growth prospects and possessing superior return potential, making them ideal for investors with higher risk-taking abilities. Against this backdrop, let’s look at my two top small-cap picks poised to deliver multi-fold returns in the long run.

WELL Health Technologies

WELL Health Technologies (TSX:WELL) is a tech-enabled healthcare company that facilitates healthcare professionals in the delivery of positive patient outcomes. The company had a record 1.7 million patient visits during the second quarter of 2025, with 1 million of these visits coming from Canada only. Its innovative product offerings, strategic acquisitions, and growing awareness have led to increased patient visits, driving its financials. Its topline grew 57% to $356.7 million during the quarter, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 231% to $49.7 million.

Moreover, I expect the uptrend in WELL Health’s financials to continue due to the increased adoption of virtual healthcare services and the digitization of clinical procedures, driving the demand for the company’s services. Meanwhile, the healthtech continues to make strategic acquisitions and investments in artificial intelligence (AI) to develop innovative product offerings. As of August 14, the company had acquired 14 assets year-to-date. Besides, it had signed 15 letters of intent, which can contribute $134 million to its annualized revenue.

Meanwhile, WELL Health’s management expects its 2025 revenue to come between $1.4–$1.45 billion, with the midpoint representing year-over-year growth of 55%. The management also expects its 2025 adjusted EBITDA to come between $190–$210 million, representing a substantial improvement from $46.7 million in the previous year. Additionally, the company trades at a discounted NTM (next 12 months) price-to-sales multiple of 0.8, making it an attractive buy.

Savaria

Second on my list is Savaria (TSX:SIS), which offers accessibility solutions to individuals with disabilities. With its widespread manufacturing facilities and global dealer networks, the Laval-based company markets its products across the globe. The company posted an impressive first-quarter performance earlier this month, with adjusted EPS (earnings per share) growing by 26.1% to $0.29. A focus on improving efficiencies from procurement, pricing, and operations through its “Savaria One” initiative led to expansion of its margins, thereby driving its adjusted EPS. Its adjusted EBITDA margin improved from 19% in the prior year’s quarter to 20.6%.

Moreover, the growing aging population and rising income levels have raised the demand for Savaria’s products and services, thereby creating long-term growth potential. Additionally, the company continues to focus on the development of new products, enhancing production capacity, increasing operational efficiencies, and delivering cost savings through streamlined procurement. Also, it has initiated planning for the second stage of its “Savaria One” initiative. Amid these initiatives, management projects its 2025 revenue to come around $925 million, representing year-over-year growth of 6.6%. Management further expects its adjusted EBITDA margin to reach between 17% and 20%. So, its growth prospects look healthy.

Additionally, Savaria pays monthly dividends, with its forward dividend yield at 2.6%. Its valuation also looks reasonable, with its NTM price-to-earnings multiple at 17.5. Considering all these factors, I believe Savaria can deliver multi-fold returns over the next 10 years.  

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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