Today we have identified five Canadian financial stocks with the highest Return on Equity ratios. The Return on Equity (ROE) ratio is used by the investment community to measure and compare a company’s ability to produce profits with shareholder investment.
Street Capital Group Inc. (TO:SCB)) – $1.35
Investment Management & Fund Operators
Street Capital Group Inc., formerly Counsel Corporation, is a financial services company. The Company operates principally as a mortgage lending business. It carries on its mortgage lending business through its subsidiary, Street Capital Financial Corporation (Street Capital Financial), which is a residential mortgage lender. Street Capital sells its mortgages to various financial institutions in Canada. The Company holds interests in a private equity business through its subsidiary, Knight’s Bridge Capital Partners Inc.
- Market Cap: $165 million
- Return on Equity: 13.0%
- YTD Price PCT Change: -28.2%
- Revenue (LTM): $62 million
Equitable Group Inc. (TO:EQB) – $55.45
Consumer Lending
Equitable Group Inc. is a financial services business that operates through its wholly-owned subsidiary, Equitable Bank (the Bank). Equitable Bank serves retail and commercial customers across Canada with a range of savings solutions and mortgage lending products, offered under the Equitable Bank and EQ Bank brands. Equitable Bank provides mortgage loans to a range of customers that include business-for-self borrowers, newcomers to Canada and commercial real estate investors. The Bank also provides Canadians with various saving options that offer security and attractive interest rates.
- Market Cap: $914 million
- Return on Equity: 15.1%
- YTD Price PCT Change: -8.3%
- Revenue (LTM): $305 million
Home Capital Group Inc. (TO:HCG) – $14.00
Banks
Home Capital Group Inc is a Canada-based holding company that operates through its subsidiary, Home Trust Company (Home Trust), which offers deposits, residential and non-residential commercial mortgage lending and consumer lending. It offers deposits through brokers and financial planners, and through its direct-to-consumer deposit brand, Oaken Financial. Home Trust, through its subsidiary, Home Bank, offers mortgage, deposit and personal banking products. Its mortgage lending includes Traditional Single-family and ACE Plus Lending; insured residential lending; residential commercial lending, and non-residential commercial lending. Its consumer lending includes credit card and line of credit lending, and other consumer retail lending.
- Market Cap: $1.12 billion
- Return on Equity: 16.3%
- YTD Price PCT Change: -55.3%
- Revenue (LTM): $494 million
Fiera Capital Corp. (TO:FSZ) – $14.77
Investment Banking & Brokerage Services
Fiera Capital is a Canada-based independent, full-service, multi-product investment company. It provides investment advisory and related services to institutional investors, private wealth clients and retail investors. It operates through investment management services segment in Canada and the United States. It offers institutional clients a range of traditional and alternative investment strategies through specialized and balanced mandates. Its diverse client base includes pension funds, endowments, foundations, religious and charitable organizations as well as large municipal and university funds. It offers management services and investment counselling, catering to the specific needs of private clients and high-net-worth individuals and their families, as well as endowments and foundations.
- Market Cap: $924 million
- Return on Equity: 18.3%
- YTD Price PCT Change: 15.6%
- Revenue (LTM): $413 million
First National Financial Corp. (TO:FN) – $26.86
Corporate Financial Services
First National Financial Corporation is a Canada-based parent company of First National Financial LP (FNFLP), which is an originator, underwriter and servicer of prime residential (single-family and multi-unit) and commercial mortgages. The Company operates through two segments: Residential (which includes single-family residential mortgages) and Commercial (which includes multi-unit residential and commercial mortgages). The Company provides mortgage-financing solutions to the mortgage market in Canada.
- Market Cap: $1.61 billion
- Return on Equity: 37.8%
- YTD Price PCT Change: -0.3%
- Revenue (LTM): $588 million
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own shares in any of the companies mentioned above.