The largest listed companies, Shopify and the Royal Bank of Canada, are market drivers. However, these are not necessarily the stocks that you should buy today. the North West Company (TSX: NWC) isn’t as famous as tech superstar or top lender, but it has the power to stay. It can offer consistent returns and sustainable income to potential investors.
Price comparison
Most investors base their investment decisions on the fundamentals of a business. Shopify, RBC, and North West Company have them. If price is your consideration, Retailer is the cheapest choice at $ 36.56 per share. The e-commerce titan is overpriced at $ 1,910.08, while the leading bank sells for $ 126.28.
In terms of performance, Shopify (+ 32.89%) has outperformed RBC (+ 24.17%) and North West (+ 15.01%) since the start of the year. From a revenue perspective, you will gain from Shopify when you buy low and sell high. Since RBC and North West are dividend stocks, you will earn two ways: capital gains and dividends. The bank stock pays a dividend of 3.42%, while the grocer offers 3.96%.
If you have $ 10,000 in free money to invest today, North West is a better deal than Shopify and RBC. Your money can buy 270.56 shares of the grocer against 79.19 shares of the bank and only 5.23 shares of the e-commerce platform.
Investment thesis
There is so much to love about North West. The roots of this $ 1.77 billion company can be traced back to 1668, with the first stores in Canada and Alaska. In 2021 or 353 years later, it is now the leading retailer of rural communities and underserved urban neighborhoods in northern and western Canada, rural Alaska, the South Pacific islands and the Caribbean.
No company could come close to North West’s core strengths. The retailer has learned to adapt to the changing environment and consumer behavior and to align its product line with each market it serves. North West also has the logistics expertise to move or bring products to hard to reach or remote areas.
In addition to daily needs and other in-demand products, North West offers a wide range of financial services through We Financial. Customers can order non-perishable items and general merchandise from Sealift Express, an online seasonal ordering program.
In addition, North West has businesses that serve as its healthcare arm. AMDocs provides community medical services. North West Telepharmacy manages pharmacy services remotely, while Northern / NorthMart Pharmacy provides healthcare solutions to rural, remote, Indigenous or otherwise underserved communities in Canada.
The reach of the northwest is far and wide. Likewise, its international retail and wholesale brands have multiplied. Alaska Commercial Company, Cost-U-Less, Quickstop, AC Financial, and Pacific Alaska Wholesale are household names in the communities.
Company performance
In the first quarter of fiscal 2021 (quarter ended April 30, 2021), management announced a 225% and 189% increase in net income and operating income compared to the first quarter of fiscal 2020. He said his replacement would support a leaner cost structure, more profitable retail businesses and a less volatile business overall.
Endless potential
Dan McConnell, the company’s new CEO effective August 1, 2021, said, “North West is a company with endless potential. Shopify and RBC are the goliaths of the TSX. However, as one of the oldest retail companies in the world, the North West Company will never disappoint investors.
Foolish contributor Christopher Liew has no position on any of the stocks mentioned. The Motley Fool owns shares and recommends Shopify. The Motley Fool recommends THE NORTH WEST COMPANY INC and recommends the following options: January 2023 long calls at $ 1,140 on Shopify and January 2023 short calls at $ 1,160 on Shopify.
