11 Most Profitable Canadian Stocks
In this piece, we will take a look at the 11 most profitable Canadian stocks. For more great Canadian stocks, head on over to 5 Most Profitable Canadian Stocks.
Canada is one of the largest, richest, and most developed countries in the world. In terms of land mass, it is the second largest, coming second only to the Russian Federation, and in terms of the economy, its nominal gross domestic product (GDP) was worth $2.2 trillion by the end of last year, ranking 15th globally. At the same time, Canada's GDP per capita, which is the per person economic output stood at $56,794.
The country is rich in natural resources, and it is one of the few developed nations in the world that also relies on the primary sector for its export earnings. Canada's economy also benefits from its close proximity to the United States. The U.S. border is Canada's largest land border, and as of 2021, the U.S. and Canada had traded in $665 billion of products and services (For more on America's biggest trading partners, be sure to check out 30 Largest Trading Partners of the U.S.). The pair have a close partnership in several key sectors, and Canada has a crucial role in American economic strength as it is the largest importer of U.S. origin products.
These stood at $307 billion as of 2021 end, and the largest imports were of machinery and vehicles, which stood at a whopping $88 billion. Yet, while Canada buys cars from the U.S., it sells its southern neighbor the fuel on which it runs its own vehicles. As of 2021 end, Canada had exported $365 million of goods and services to the U.S., and more than one third of these, or $109 billion were of mineral fuels and derivatives. At the same time, while Canada was America's largest export destination, the U.S. was also the largest importer of Canadian goods - indicating a key and enduring partnership between the two North American countries.
Therefore, it is unsurprising that some of the largest Canadian companies are traded directly on U.S. exchanges instead of as over the counter stocks. This trend is often absent globally, as corporate behemoths from other regions and countries such as South Korea see their shares trade over the counter. However, Canada also has a well-developed financial industry of its own. The Canadian Toronto Stock Exchange (XTSE) is the third largest exchange in North America as of 2022 with the cumulative market capitalization of all the firms trading on it sitting at $2.76 trillion. Globally, the TSX comes in at an eleventh place. Business is booming for the exchange as well, with the latest data showing that in December 2022 total financing grew by 521% over November and by 27% annually. Finally, a total of 1,791 companies were listed on the exchange in December 2022.
True to its form of reliance on energy exports for foreign exchange, the oil and gas sector is one of the largest components of the Canadian stock market. At the same time, Canada is also one of the hottest regions for venture capital investments. In fact, data from the Canadian government points out that as of 2021, venture capital investment in the country stood at $14.7 billion - making Canada the third largest VC destination among the Organization of Economic Coordination and Development (OECD) countries. The Canadian government itself is also stimulating this investment as it has promised up to $450 million in support for VC investments in industry sectors such as life sciences and support for marginalized communities and women.
Canada also has a well-developed science and technology industry, evidenced particularly by its regular contribution to the International Space Station (ISS). One major Canadian equipment that is central to the space station's operation is the Canadarm. This is a robotic arm that is used to both capture uncrewed vehicles that dock with the ISS and to aid the astronauts when they repair the orbiting laboratory. It also has an astronaut corps, with Colonel Chris Austin Hadfield of the Canadian Air Command famous for his science experiments (and songs!) onboard the ISS that have captured public attention for decades.
Today's piece will focus on the most profitable Canadian stocks. Almost all major Canadian firms also have a secondary listing on U.S. stock markets, and some top performers in today's piece are Bank of Montreal (NYSE:BMO), Royal Bank of Canada (NYSE:RY), and The Toronto-Dominion Bank (NYSE:TD).
Our Methodology
We dug through all Canadian companies that have listed their shares both on American and local markets and then sorted them through their net income.
11 Most Profitable Canadian Stocks
11. Tourmaline Oil Corp. (OTCMKTS:TRMLF)
Trailing Twelve Months Net Income: $4.12 billion (1CAD = 075USD)
Number of Hedge Fund Holders In Q3 2022: N/A
Tourmaline Oil Corp. (OTCMKTS:TRMLF) is an oil and gas company that is headquartered in Calgary. The firm focuses its operations on the back end of the energy industry, and it is primarily involved in exploring and developing oil and gas properties.
Tourmaline Oil Corp. (OTCMKTS:TRMLF) is another oil company that rode the 2022 oil price wave to new heights. Not only did the firm announce a special dividend of CAD2.25 per share, but it also raised its ordinary dividend by 11% to 25 Canadian cents. The firm is the largest natural gas producer in Canada, and it is also one of the few Canadian companies that is responding to the growing demand for liquefied natural gas in the wake of the Russian invasion of Ukraine that has seen European demand for the fuel grow for non Russian sources.
Along with Royal Bank of Canada (NYSE:RY), Bank of Montreal (NYSE:BMO), and The Toronto-Dominion Bank (NYSE:TD), the Tourmaline Oil Corp. (OTCMKTS:TRMLF) is a Canadian top performer in profitability.
10. Canadian Imperial Bank of Commerce (NYSE:CM)
Trailing Twelve Months Net Income: $4.64 billion (1CAD = 075USD)
Number of Hedge Fund Holders In Q3 2022: 12
The Canadian Imperial Bank of Commerce (NYSE:CM) is one of the largest banks in Canada. Headquartered in Toronto, it has a diverse client list that ranges from everyday consumers to also cover the institutional, public sector, and corporate clients. The bank provides a host of different services such as accounts, loans, lines of credit, and insurance services.
A technology company announced in February 2023 that the Canadian Imperial Bank of Commerce (NYSE:CM) is partnering up with JPMorgan and other banks to increase its revolving credit facility to $600 million. 12 of the 920 hedge funds polled by Insider Monkey during the third quarter of last year had invested in the bank.
Out of these, Joseph Sirdevan's Galibier Capital Management is The Canadian Imperial Bank of Commerce (NYSE:CM)'s largest investor. It owns 828,762 shares that are worth $33 million.
9. Manulife Financial Corporation (NYSE:MFC)
Trailing Twelve Months Net Income: $5.39 billion (1CAD = 075USD)
Number of Hedge Fund Holders In Q3 2022: 14
Manulife Financial Corporation (NYSE:MFC) is a Toronto based financial services firm. The company's product portfolio spans wealth management, insurance, asset management, corporate services, and annuities.
Manulife Financial Corporation (NYSE:MFC) was one of the companies that attended the World Economic Forum in Davos, Switzerland in January 2023 where the firm announced two innovation challenges for a sustainable forest economy. By the end of 2022's third quarter, 14 of the 920 hedge funds part of Insider Monkey's research had owned a stake in the company.
Manulife Financial Corporation (NYSE:MFC)'s largest hedge fund shareholder in our database is Joseph Sirdevan's Galibier Capital Management which owns 2.5 million shares that are worth $45 million.
8. Imperial Oil Limited (NYSE:IMO)
Trailing Twelve Months Net Income: $5.46 billion (1CAD = 075USD)
Number of Hedge Fund Holders In Q3 2022: 19
Imperial Oil Limited (NYSE:IMO) is an oil and gas company based in Calgary. The firm was set up in 1880, and it is a diversified energy company that both explores for and produces oil and associated products and sells them to the general public as well. Imperial Oil Limited (NYSE:IMO) has more than three hundred million barrels of proven oil reserves.
Imperial Oil Limited (NYSE:IMO) is currently at the center of a controversy as the Albertan energy regulator has issued an environmental protection order against the firm after leaks were discovered in the company's oil sands facility. Insider Monkey took a look at 920 hedge fund holdings for last year's third quarter and discovered that 19 had held the company's shares.
Imperial Oil Limited (NYSE:IMO)'s largest investor is Jean-Marie Eveillard's First Eagle Investment Management which owns 23 million shares that are worth $1.2 billion.
7. Suncor Energy Inc. (NYSE:SU)
Trailing Twelve Months Net Income: $5.84 billion (1CAD = 075USD)
Number of Hedge Fund Holders In Q3 2022: 45
Suncor Energy Inc. (NYSE:SU) is another Calgary based oil and gas company. It has oil exploration and production assets in Canada, Libya, and Syria.
Suncor Energy Inc. (NYSE:SU) announced in February 2023 that it had finished the process of buying a $688 million stake in an Alberta project in which the oil giant Total is also involved. After plowing through 920 hedge fund holdings, Insider Monkey discovered that 45 funds had bought Suncor Energy Inc. (NYSE:SU)'s shares.
Out of these, Peter Rathjens, Bruce Clarke, and John Campbell's Arrowstreet Capital is Suncor Energy Inc. (NYSE:SU)'s largest investor. It owns 19.7 shares that are worth $556 million.
6. The Bank of Nova Scotia (NYSE:BNS)
Trailing Twelve Months Net Income: $7.41 billion (1CAD = 075USD)
Number of Hedge Fund Holders In Q3 2022: 15
The Bank of Nova Scotia (NYSE:BNS) is one of the biggest banks in Canada. Headquartered in Toronto, it has operations in a variety of different countries such asthe U.S., Mexico, Chile, and Colombia.
The Bank of Nova Scotia (NYSE:BNS) announced in February 2023 that it is hiring Wall Street executives from a French investment firm to expand its presence in the $1 trillion U.S. structured loan market. 15 of the 920 hedge funds profiled by Insider Monkey in 2022's September quarter had owned a stake in The Bank of Nova Scotia (NYSE:BNS).
The Bank of Nova Scotia (NYSE:BNS)'s largest investor is Jim Simons' Renaissance Technologies which owns 1.9 million shares that are worth $90 million.
The Bank of Nova Scotia (NYSE:BNS), Bank of Montreal (NYSE:BMO), Royal Bank of Canada (NYSE:RY), and The Toronto-Dominion Bank (NYSE:TD) are some of the most profitable publicly traded Canadian companies.
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Disclosure: None. 11 Most Profitable Canadian Stocks is originally published on Insider Monkey.