Small caps are some of the most exciting shares to own out of all the options on the ASX. They have the potential to grow revenue and the share price faster than the large businesses.
Here are four of my favourite small caps:
National Veterinary Care Ltd (ASX: NVL)
National Veterinary Care is a fast-growing vet business that's acquiring other vets and adding to its network.
It is also growing revenue through its 'best for pet' annual membership and the managed clinic service it offers. These schemes, combined with growing profit margins, should see it be a winner over the coming years.
National Vet Care is currently trading at 24x FY17's estimated earnings and management expect to start paying a dividend in the next few months.
Nanosonics Ltd (ASX: NAN)
Nanosonics provides hospitals with a disinfectant device for their ultrasound probes.
It's proving to be very popular because it meets the most up-to-date health requirements. There is still a large potential market for Nanosonics to tap in to, which is why there could still be a lot of growth to come.
Fastbrick Robotics Ltd (ASX: FBR)
Fastbrick Robotics has created a concept of a robotic arm attached to a truck which can do in a few hours what would take a team of bricklayers all day.
This company is by far the most speculative share on this list, so be prepared for at least a lot of volatility and perhaps the concept not coming to fruition.
It isn't yet making a profit or paying a dividend.
Collection House Limited (ASX: CLH)
Collection House is a debt collector that has been through a bit of a rough patch over the last few years.
Things could be about to turn around as the recovery plan's results come through and the debt collection contract with the ATO is now well established.
Collection House is currently trading at 9x FY17's estimated earnings with a grossed-up dividend yield of 9.52%.
Foolish takeaway
All four have the potential to outperform the market over the long-term. At the current prices I would only be interested in buying National Vet Care and Nanosonics.
For even more market-beating ideas, you should read about these shares.
