3 Sustainability Stocks with Low Volatility, High YTD Returns

    The Canadian sustainability stocks on our list have some of the lowest betas in the sustainability sector

    SmallCapPower | May 4, 2018: Beta is a measure of the volatility of a particular security compared to the broader market as a whole. A beta of 1 suggests that the security’s price moves in-line with the market, while a beta below 1 indicates that the security is less volatile than the market and vice versa. In recent years, consumers and producers alike have started paying more attention to conservation of the earth and environment. Many consumers are looking for companies that support their environmental responsibility, therefore demand for environmentally-friendly goods and services continues to rise. The Canadian sustainability stocks on our list today have some of the lowest betas compared to similar companies aimed at sustainability, as well as strong YTD returns.

    good natured Products Inc. (TSXV:GDNP) – $0.14
    Bioplastic Products & Packaging

    good natured Products is a Canada-based bioplastics company that creates bioplastics products, aimed primarily at packaging, producing over 100 food packaging designs, 10 grades of rollstock sheets, and 30 home & business organizational products. The Company’s business model is highly scalable, using outsourced supply chain partners to manufacture its products. The Company uses this model to take advantage of growing demand in the bioplastics sector, which has an estimated compound annual growth rate of 30%. The Company plans to expand its market reach through organic growth, and by acquiring relevant brands and companies. On April 23, the Company has signed a three-year agreement to supply a U.S. industry leader in thermoformed packaging. The deal is expected to generate US$1 million in organic growth this year.

    • Market Cap: $10.7 Million
    • YTD Total Return: 55.6%
    • Daily Beta – 180 Day: -0.7

    Redishred Capital Corp. (TSXV:KUT) – $0.60
    Environmental Services & Equipment

    Redishred is a Canada-based services company that owns the Proshred brand, a mobile on-site shredding company. Proshred franchisees operate out of 22 states and in five countries in the Middle East. The Company’s Q4 2017 EBITDA equated to $535,000, which was an increase of 92% over the previous quarter.

    • Market Cap: $28.4 Million
    • YTD Total Return: 9.1%
    • Daily Beta – 180 Day: 0.2

    Polaris Infrastructure Inc.  (TSX:PIF) – $18.96
    Independent Power Producers

    Polaris Infrastructure is a Toronto-based company focused on the operation, acquisition and development of renewable energy projects in Latin America. The Company currently operates a 72MW geothermal project in Nicaragua, which is one of the largest producers of renewable energy in the country.

    • Market Cap: $298.1 Million
    • YTD Total Return: 10.0%
    • Daily Beta – 180 Day: 0.2

    To find out more about good natured Products Inc. (TSXV:GDNP), please “visit the company’s Investor Hub.”

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    Ubika Research/SmallCapPower has received compensation from good natured Products Inc. (TSXV:GDNP) to provide analyst research coverage. For full disclosure please visit here >>.

    Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.

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