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Beat the professionals with 3 small-cap growth stocks

Small cap stocks are often a good place to find hidden gems that professional and institutional investors have not yet discovered or are unable to invest in given limitations in their investment criteria.

With that in mind, here are three small cap stocks that could help you beat the professionals:

  • Bravura Solutions Ltd (ASX: BVS) provides superannuation, pension, life insurance, investment, wrap, private wealth and funds administration software and related professional services. The company owns the Sonata wealth management administration system which has been driving growth with long term contracts recently signed with South African listed companies Discovery Limited and Stanlib (part of Liberty Group). The Sonata system has achieved a compounded annual growth rate of 108% since FY 2018 and management are bullish on the outlook.
  • MotorCycle Holdings Ltd (ASX: MTO) is Australia’s largest motorcycle dealership operator with 34 franchises operated from 24 locations in Queensland, New South Wales and the Australian Capital Territory. It has continued to grow in a challenging market through acquiring new dealerships, a new finance joint venture with Allied Credit and a diversified revenue stream.
  • FFI Holdings Ltd (ASX: FFI) is a specialised food manufacturing operation, providing ingredients, products and services to Bakers & Pastrycooks, Ice cream & Dairy, Confectionery, Chocolate, Food Service and Supermarkets. The business has very little debt and has benefited from lower raw material costs as the prices of sugar and coco have declined significantly. The company focuses on niche markets and has a preference for bolt on acquisitions. It recently acquired Orchard Icing which management expects to provide significant synergies with the existing operations.  

If you are looking for more ideas on companies to invest in, you might want to have a look at these three Aussie companies that are taking over the world.

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Motley Fool contributor Kevin Gandiya has no position in any of the stocks mentioned.

You can follow Kevin on Twitter @KevinGandiya.

The Motley Fool Australia has no position in any of the stocks mentioned. 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.