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5 Small Cap Tech Stocks to Boost your Portfolio in 2021

19 Jan 5 Small Cap Tech Stocks to Boost your Portfolio in 2021

While Industries across the globe are grappling with the pandemic and its impact on their operations, Technology Industry has been focused on minimizing the impact and marching ahead with its innovations and breakthroughs, be it healthcare, contactless payments or big data analysis.

We take a look at some tech companies that are impervious to the scare and offer a very attractive upside in the long run. These companies not only have an excellent potential for growth and returns but have major upcoming catalysts such as new products and services, growing client base or even global expansion plans lined up for 2021.

CommVault Systems (NASDAQ: CVLT)

Market Cap: $2.71B; Current Share Price: 57.48 USDChart
Data by YCharts

CommVault offers a wide gamut of intelligent data management products and solutions ranging from data protection, disaster recovery, HyperScaleX, Hedvig Distributed Storage, data backup, Cloud Management, Security and Compliance to name a few. The Company has the distinction of being the leader in Gartner Magic Quadrant for 8 years in data center backup and recovery solutions.

The Company has a robust intellectual property rights portfolio with over 900 issued patents worldwide. Most recently CommVault introduced two new additions to its portfolio namely Metallic, a next-generation SaaS protection service and Hedvig that combines software-defined storage capabilities with industry-leading data management products. In 2021, the Company intends to release quarterly feature releases besides introducing new cutting-edge products into the market.

CommVault’s product set consists of four primary products namely CommVault Complete™ Backup & Recovery (Enterprise backup and recovery solution); Commvault HyperScale™ Technology (secondary storage with integrated data protection service); Commvault Orchestrate™ (Automated service delivery technology) and Commvault Activate™(Security and Compliance). Furthermore the company provides real-time support, enhanced support, network and hardware expertise, in addition to offering technology consultation, business consulting and training services. The company has strategic ties with companies such as randstand, adidas (OTCQX: ADDYY), AstraZeneca (NASDAQ: AZN), Sony (NYSE: SNE), Telefonica (NYSE: TEF), Spectrum (NASDAQ: SPPI) and Panasonic (OTCPINK: PCRFY) to name a few.

The Company reported total revenue of $171 million, up 2% year-over-year and $129.1 million in total recurring revenue, an increase of 6% year over year as per is Q2,2021 financial results. It has been successful in achieving subscription renewals and adding nearly 200 more subscription customers. In addition, Total cash and short-term investments were $394.0 million as of September 30, 2020 compared to $339.7 million as of March 31, 2020. The year 2021 will be the first significant year of CommVault’s subscription renewal cycle and the Company intends to fully focus on three critical metrics namely subscription as a percentage of software and products revenue, recurring revenue as a percentage of total revenue, and annual recurring revenue or ARR.

Repay Holdings (NASDAQ: RPAY)

Market Cap: $1.78B; Current Share Price: 24.17 USDChart
Data by YCharts

Repay Holdings provides integrated payment processing and financial technology solutions to over 10,000 merchant locations, encompassing credit and debit processing, automated clearing house processing and instant funding. The Company caters to a wide array of industries such as consumer finance, automotive, healthcare, hospitality, education, receivables management and financial institutions. In October 2020, the Company signed a definitive agreement to acquire CPS payment services, a B2B payments and accounts payable automation technology provider, in consideration of $93 million, out of which $78 million is to be paid at closing.

The acquisition is aimed at achieving immediate scale and diversification as CPS caters to over 160+ enterprise clients and will help REPAY venture into new verticals such as education, government, and media. Its solutions are integrated with more than 25 ERP and accounting software platforms and are likely to increase REPAY’s B2B payment volume to over $4 billion and its supplier network to over 50,000. In July 2020, REPAY acquired cPayPlus, an accounts payable automation provider servicing automotive, property management, and field services, with over  26,000 enrolled supplier relationships for up to $16.0 million, of which $8.0 million has been paid and another $8.0 million, will become payable in Q3,2021 upon achievement of growth targets.

The Company expects its card payment volume to be about $14.75 – 15.00 billion and its total revenue to be nearly $148 – 153 million, as per its Q3, 2020 financial results. These figures also include contribution from CPS Payment Services.

Digi International (NASDAQ: DGII)

Market Cap: $565.15M; Current Share Price: 19.08 USDChart
Data by YCharts

Digi International delivers leading-edge IoT Products & Services and IoT Solutions in the form of embedded systems, networking systems, remote management systems. The Company addresses the complex needs of industrial IoT that require rugged solutions to tackle unfavorable environmental conditions. Digi’s comprehensive IIoT solutions cover water/waste management, digital signage, manufacturing automation, remote monitoring, traffic management and utility management to name a few.

Image Source: Company

The Company enables organizations to assess and support their 5G requirements, be it network device planning, IoT application development or long-term deployment, through Gigabit-Class LTE and helps them experience higher speed and lower latency. Digi also offers private LTE networks based on citizens broadband radio services (CRBS) to enterprises engaged in mining, healthcare services, and educational institutions that bring in numerous benefits such as improved security, privacy, flexibility, quality of service and lower data transfer costs.

Digi also offers Out-of-Band (OOB) management services through its Smart OOB™ management and NetOps Console Servers that allow enterprises to manage critical IT assets and infrastructure from anywhere through its Digi Remote Manager. Furthermore the Company has a Network Resilience Platform that offers a combination of Out-of-Band and NetOps solutions.

SmartSense by Digi develops scalable IoT solutions for the food and pharmacy industry and has been implemented in various leading organizations such as Walgreens, a pharmacy retailer, to confirm to stringent quality control requirements; Taco Johns to automate food temperature monitoring and improving operational efficiencies and many more to realize savings on labour cost and product loss.

The Company reported record annual revenue of$279.3 million compared to $254.2 million, an increase of 9.9 percent as per its Q4, 2020 financial results. The company’s acquisition of Opengear has helped the company tackle the challenges posed by the pandemic. Digi has also made certain key organizational changes and is buoyed at the addition of new enterprise customers by its SmartSense IoT Solutions business.

Allied Motion Technologies (NASDAQ: AMOT)

Market Cap: $490.03M; Current Share Price: 50.22 USDChart
Data by YCharts

The Company develops specialty custom-engineered motion control products for use in medical ventilators, respirators, robotics, automobile, aerospace and defense markets across the U.S, Canada, South America, Europe and Asia. Allied Motion is leveraging its expertise in electro-magnetic, mechanical and motion technology to create highly differentiated products, with an aim to become the leader in controlled motion solutions, in specific markets.

Allied Motion, formerly known as Hathaway, refocused its resources on the motion products market after selling its power, process and calibration businesses in 2003. As part of its vision for 2021, the Company intends to actively pursue strategic acquisitions and target specific markets that hold the most potential for gaining a leadership position. The technological expertise of the Company is wide-spread as evidenced by its impressive breadth of products, ranging from single-axis and multi-axis motion controllers, integrated and stand-alone drives, brushless and brushed DC motors to name a few.

Image Source: Company

The company acquired Invacare Corporation’s (NYSE: IVC) Dynamic Controls subsidiary in March 2020, and has consequently entered into a long-term product supply agreement for ongoing supply and support of the LiNX™ system and MyLiNX informatics platform utilized for creating advanced control solutions for powered wheelchairs. Allied motion has previously acquired Heidrive, Maval, and TCI.

The company’s revenue stood at $361.6M and Allied Motion paid-down $4.4 million of its debt in Q3, 2020 and also another 47 percent of its debt that was used for acquiring Dynamic Controls in just six months owing to strong cash generation.

Health Catalyst (NASDAQ: HCAT)

Market Cap: $2.05B; Current Share Price: 48.31 USDChart
Data by YCharts

Healthcare Catalyst offers cloud-based data operating system (DOS™), analytics applications and service expertise to organizations, to enable them to reach data-driven decisions and achieve financial, operational and clinical improvements. The Company provides solutions for a wide gamut of areas such as revenue and cost management, quality control and monitoring, data analytics, payer contracts etc.

The Company leverages its Adaptive Data Architecture that offers an agile, flexible and faster implementation, to bring transformative changes to healthcare management. The Company’s unique ability lies in unifying the vast amount of data generated in the healthcare settings such as patient records, hospital records, co-morbidities that can otherwise be overwhelming to manage and interpret. Health Catalyst has risen to the occasion to tackle the COVID-19 pandemic head-on by developing a new range of products and services like Vitalware®: Mid-Revenue Cycle Solutions for COVID-19, Capacity Planning Tool, Rapid Response Analytics, Touchstone® COVID-19 National Data Sets and Patient Safety Monitor™ Application to name a few.

Healthcare Catalyst has been the recipient of various laurels such as Microsoft health Innovation Award 2020 for Improving Operational Outcomes, Best Companies to work for by Glassdoor, Utah Business and others. The Company caters to organizations of repute like Stanford healthcare, UPMC,  Acuitas Health, Allina Health, Aloha Care, Banner Health, Integris, Memorial and Northwell Health among others.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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References

https://ir.commvault.com/static-files/e5802259-96b2-405b-a98d-878849331d6f

https://www.fool.com/earnings/call-transcripts/2020/10/27/commvault-systems-inc-cvlt-q2-2021-earnings-call-t/

https://www.repay.com/repay-to-acquire-b2b-payments-and-accounts-payable-automation-provider-cps-payment-services/

https://investors.repay.com/news-releases/news-release-details/repay-reports-third-quarter-2020-financial-results

https://www.repay.com/partners/

https://www.digi.com/news/press-releases/digi-reports-q4-fy20-results

https://www.businesswire.com/news/home/20200309005251/en/%C2%A0Invacare-Corporation-Announces-Sale-of-its-Dynamic-Controls-Business-to-Allied-Motion-Technologies-Inc.

https://alliedmotiontechnologiesinc.gcs-web.com/static-files/102a089d-a7dd-48df-b945-c234ccc9a731

https://cloudblogs.microsoft.com/industry-blog/health/2020/05/19/congratulations-to-our-2020-health-innovation-award-winners/

https://www.healthcatalyst.com/our-clients/

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