We’ve all heard of Google and Apple, but closer to home there are tech shares laying in wait, such as Technology One Limited (ASX: TNE), Gentrack Group Ltd (ASX: GTK), Hansen Technologies Limited (ASX: HSN), Class Ltd (ASX: CL1) and iSentia Group Ltd (ASX: ISD).
Unlike Google and Apple, which are worth $780 billion and $1 trillion, respectively, some of Australia’s best technology companies are small yet innovative companies. In my opinion, most of the best Australian technology shares lay outside the household names, worth up to $600 million.
Here are five ASX tech shares you may never have heard of:
- Technology One Limited is the largest company on this list, worth $1.6 billion. Technology One is amongst the ASX’s largest tech shares because it has grown rapidly — its shares are up 350% in five years. Technology One is an enterprise software company. Meaning, its clients are businesses who need a complete technology overall or management. It pays a 1.6% dividend
- Gentrack Group Ltd also offers software to big businesses. Its clients include energy providers and utility operators, such as airports. The company recently announced an acquisition of UK-based Junifer Systems for $68.5 million. That’s a big acquisition for a $300 million company, but it will rapidly expand Gentrack’s presence in the market. It offers a 3% dividend.
- Hansen Technologies Limited is a $620 million software business that provides its services to call centres of large companies in energy and telecommunications. It offers a 2.1% dividend.
- Class Ltd is a little harder to get a handle on. It creates software that is used by accountants and financial advisors to administer self-managed superannuation funds (SMSFs) and investment portfolios. From tax reporting to valuation and dividends, it’s easy to see a large market for Class’s products now and in the future. It offers a 1% dividend.
- iSentia Group is a market intelligence business and could be somewhat of a ‘fallen angel’. It helps companies monitor their presence in the media (newspaper, online, etc.). The company has made some poor strategic decisions in recent years, leading to sub-par performance. However, it could be more of a ‘value’ investment than a growth business at these levels, with a dividend of 5.2%.
Apple, Google, Facebook, these are the companies everyone thinks of when ‘technology’ is brought up. If you don’t already own shares in these giants, you probably should. However, there are plenty of Australian innovators vying for a spot in your investment portfolio, too. If I were to pick one of these ASX shares, it would be Gentrack – followed very closely by Class. In my opinion, the jury is still out on iSentia — but I have it firmly on my watchlist.
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The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Alphabet (A shares), Alphabet (C shares), Apple, and Facebook and has the following options: long January 2018 $90 calls on Apple and short January 2018 $95 calls on Apple. The Motley Fool Australia owns shares of Class Limited and Hansen Technologies. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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