On Tuesday I looked at three small cap ASX shares which I think have the potential to grow much larger in the future. You can read about them here.
But if you're not comfortable investing in small caps, then you might want to consider mid cap shares.
I like this side of the market as mid caps tend to carry less risk than small caps and greater potential returns than large caps.
With that in mind, here are two ASX mid cap shares I would buy:
BINGO Industries Ltd (ASX: BIN)
I think this $1.5 billion waste management company could be a great option for investors. While the pandemic is likely to weigh on its near term performance, it didn't stop it from delivering a strong FY 2020 result. Thanks partly to its Dial a Dump Industries acquisition, BINGO delivered a 40.8% increase in underlying EBITDA to $152.1 million.
I'm confident there will be further growth ahead for BINGO thanks to the aforementioned acquisition. This is because it has allowed the company to be fully vertically integrated from collections to landfill. It also makes it the largest player in building and demolition waste in Sydney and provides it with some much-needed diversification.
Jumbo Interactive (ASX: JIN)
Jumbo Interactive is an $835 million online lottery ticket seller and the operator of the Oz Lotteries website. From this popular website, the company resells tickets on behalf of gambling giant Tabcorp Holdings Limited (ASX: TAH). These two companies have worked together for many years and recently signed a new long term reseller agreement.
I believe this long term agreement gives the company a lot of stability with its future earnings and will allow it to focus on growing its Powered by Jumbo SaaS business. I'm confident this business will be the key driver of growth in the future given its massive market opportunity. Management notes that it has a US$303 billion global total addressable market, with only 7% of this market online at the moment.
