4 Canadian Financial Stocks with Superior Return on Equity

The Canadian financial stocks on our list have high earnings-to-shareholders’ equity ratios compared to their peers

Today we have identified four Canadian financial stocks that have some of the highest return on equity ratios in Canada. Return on Equity (ROE) is used to measure profitability by showing how much net income a company generates as a percentage of shareholders’ equity. For high-growth industries, investors should expect a high ROE.

First National Financial Corp (TSX:FN) – $28.51
Corporate Financial Services

First National is a Canada-based financial services company. The Company sells mortgages. The Company’s Residential segment operates in single-family residential mortgages, and its Commercial segment operates in multi-unit residential and commercial mortgages. The Company owns a number of financial services subsidiaries and operates out of five offices across Canada.

  • Market Cap: $1,709.7 Million
  • Return On Equity (FY0): 37.8%
  • Peer Average Return On Equity (FY0): 14.7%
  • 52 Week Total Return: 14.1%
  • Revenue (LTM): $597.8 Million

Gluskin Sheff + Associates Inc. (TSX:GS) – $16.39
Investment Management & Fund Operators

Gluskin Sheff is a Canada-based financial services company that provides wealth management services to high-net-worth individuals. The Company operates an investment portfolio and provides investment advisory services on a wide variety of portfolio models.

  • Market Cap: $511.9 Million
  • Return On Equity (FY0): 33.9%
  • Peer Average Return On Equity (FY0): 14.7%
  • 52 Week Total Return: 3.9%
  • Revenue (LTM): $152.0 Million

Callidus Capital Corp. (TSX:CBL) – $10.24
Corporate Financial Services

Callidus Capital is a Canada-based financial services company. The Company offers loans to businesses unable to obtain financing from other institutions. CBL has several mechanisms in place to manage risk through loan monitoring. The Company partners with Catalyst Capital Group, a large private equity fund, to fund roughly 75% of its loans.

  • Market Cap: $518.7 Million
  • Return On Equity (FY0): 22.0%
  • Peer Average Return On Equity (FY0): 14.7%
  • 52 Week Total Return: -44.7%
  • Revenue (LTM): $124.2 Million

Fiera Capital Corp. (TSX:FSZ) – $12.80
Investment Banking & Brokerage Services

Fiera Capital is a Canada-based financial services company that provides investment advisory services in Canada, the U.S., and Europe. Its portfolio consists of 50% fixed income assets, 40% equities, and 10% other assets.

  • Market Cap: $895.6 Million
  • Return On Equity (FY0): 18.3%
  • Peer Average Return On Equity (FY0): 14.7%
  • 52 Week Total Return: 1.2%
  • Revenue (LTM): $438.0 Million

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

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