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1 Canadian Stock Beating Shopify Stock in 3-Year Growth

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Upwards momentum
Upwards momentum

Written by Amy Legate-Wolfe at The Motley Fool Canada

Shopify (TSX:SHOP)(NYSE:SHOP) continues to be the go-to for Motley Fool investors and others seeking comparisons. And it’s clear why. Shopify stock has gone gangbusters over the last few years. The Canadian stock started at just $35 per share back in 2015. As of writing, it’s now worth $1,844! That’s a growth of 5,169%, making a $10,000 investment worth $526,857 on the TSX today.

But what if I told you that it’s not Shopify stock, not even a tech stock, that could get you those numbers today? In fact, it’s a really old sector that’s currently climbing the ladder.

Move over, Shopify

If you want not just a strong Canadian stock growing right now, but a stable one, then I would consider the mining industry. Shopify stock is great, and it’s likely to keep growing at a slower pace. After all, this year it’s up just 28%. But the mining industry is going through a very interesting time.

Mining companies are merging. Whether through mergers, acquisitions, or just expansion, they are becoming diversified. This occurs through creating a diverse portfolio of not just minerals, but places. One company could have a mine in Canada, Latin America, and South Africa. This provides a stronger chance of creating sustained cash flow.

So today, we’re looking at mineral company Aura Minerals (TSX:ORA), a company that just topped the list of TSX30 companies of 2021.

First, the fundamentals

Aura Minerals currently sits at 1,313% growth over the last three years. Yet it remains a cheap stock. Unlike Shopify stock, it’s climbed to double from single digits during the last three years. Shares went from $1.33 in September 2018 to $14.75, where they are today.

As I mentioned, these mineral companies have been expanding. That includes Aura. In the last few years, the miner turned its focus toward the Americas, developing both gold and base metal projects. COVID-19 slowed production during the last year, but it looks like the company is set up to pick up the pace once more. In 2021, Aura management expects to produce between 264,000 and 295,000 ounces of gold.

And true, metals are usually cyclical. But it’s been an odd time for investors. Stimulus packages have been dished out to cover pandemic costs. Furthermore, investors on the TSX today have moved toward them as protection during this period of uncertain inflation.

Should you buy?

So now we have a strong company that’s absolutely boomed even compared to Shopify stock. Yet it remains at a cheap share price. Even still, should Motley Fool investors buy the stock? In short, despite recent growth Aura remains in a valuable position. It has a price-to-earnings ratio of 7, and enterprise value/EBITDA of 4.4, putting it well within value territory.

Furthermore, Aura has a whopping 7.27% dividend yield as of writing and a potential upside of 45% by analysts. That’s something Shopify stock simply can’t come close to, not even offering a dividend at this point.

So if you’re a Motley Fool investor looking for a top Canadian stock, Aura could be a great choice. It’s already grown well beyond Shopify stock levels but remains significantly cheaper among growth stocks to date.

The post 1 Canadian Stock Beating Shopify Stock in 3-Year Growth appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.

2021

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