Bigtincan Holdings Ltd (ASX:BTH) and this small cap ASX share could be some of the best options at the small side of the market…
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If your risk profile allows for it, having a little exposure to the small side of the market can be a good thing for a portfolio due to the strong potential returns on offer.
But which small cap ASX shares should you buy? Two that have been named as buys are listed below. Here’s what you need to know about them:
Bigtincan Holdings Ltd (ASX: BTH)
Bigtincan provides businesses across the world with an integrated, online sales enablement platform called Bigtincan Hub. This hub is a powerful, collaborative, and secure solution that automatically delivers the most relevant content to the right users directly, across any device and any network.
The company notes that its software allows sales and service organisations to increase their sales win rates, reduce expenditures, and improve customer satisfaction.
A testament to the quality of the platform is that 7 of the top 10 companies on the Fortune 500 are using it. As is banking giant Australia and New Zealand Banking GrpLtd (ASX: ANZ).
Last month Bigtincan released its half year results and reported annualised recurring revenue (ARR) of $48.4 million. This was a 50% increase over the prior corresponding period and driven by organic growth and the benefits of acquisitions.
This went down well with analysts at Ord Minnett. The broker has put a buy rating and $1.08 price target on its shares. It was pleased with its performance and believes Bigtincan has a long runway for growth in a large addressable market.
Whispir (ASX: WSP)
Whispir’s provides businesses with an intelligent and powerful communications workflow platform. Management notes that its platform revolutionises customer engagement, business resilience, and operational communications processes.
Its intuitive workflow builder allows users to quickly and reliably automate manual business processes. It also helps users create an automated workflow that is completely customisable to the business and use case.
Whispir’s platform is also used by a number of large companies. This includes AIA, Nespresso, Takata, and energy company AGL Energy Limited (ASX: AGL).
It was on form during the first half of FY 2021. The company reported a 29.2% increase in its ARR to $47.4 million. Pleasingly, more of the same is expected in the second half.
Ord Minnett is also positive on Whispir. It currently has a buy rating and $4.25 price target on its shares.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends BIGTINCAN FPO and Whispir Ltd. The Motley Fool Australia has recommended BIGTINCAN FPO and Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.