The Integrated Research Limited (ASX: IRI) share price, Corporate Travel Management Ltd (ASX: CTD) share price and Greencross Limited (ASX: GXL) share price have been on a tear over the past five years.
Growth
Integrated Research
Despite managerial changes, shares of software business Integrated Research have continued to climb. The small-cap company specialises in providing diagnostics and communications for corporate computer systems. It has partnered with some of the world's largest companies, including US banking heavyweights.
With modest profit growth, Integrated Research also pays a reliable dividend to shareholders. However, if you plan to buy shares today, you will have to pay-up because they don't come cheap.
Corporate Travel
Corporate Travel is a leading multi-national travel services business, with operations in local markets, North America, Asia and Europe. Although it has grown profits rapidly over the past five years, the company believes it has plenty of room to grow in its key overseas markets of North America and Europe.
To fuel its growth, the company has a solid net cash position (cash minus debt). And despite its shares trading on a price-earnings ratio of 37 times, it is expected to pay a 1.4% dividend to shareholders.
Greencross
Greencross is the owner of Petbarn, City Farmers and veterinary clinics across Australia and New Zealand. The company's track record of growth appears to be a function of organic expansion (e.g. smart retailing, store rollout, etc.) and acquisitions (buying other businesses) — but mostly acquisition.
Nonetheless, Greencross believes its market is fragmented and growing, offering long-term growth prospects for a company of its size. It is forecast to pay a 2.7% fully franked dividend.
Foolish Takeaway
Each of these businesses has proven they have what it takes to deliver market-beating returns. However, I think it is important to be conscious of valuation, otherwise, investors risk overpaying and exposing their portfolio to unnecessary risks.
In my opinion, each of these companies would be a buy at the right price. At today's prices, I think Integrated Research is perhaps the best value for long-term investors. But I'm waiting for a more compelling valuation before buying in.
