Stock Analysis

Insider Favorites: Three High-Growth Companies With Strong Ownership

NSEI:QUESS
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In a global market environment where rising U.S. Treasury yields are influencing stock performance, growth stocks have shown resilience, outpacing their value counterparts despite broader economic uncertainties. As investors navigate these conditions, companies with high insider ownership often stand out as potentially strong candidates for growth due to the confidence and commitment demonstrated by those who know the business best.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Lavvi Empreendimentos Imobiliários (BOVESPA:LAVV3)11.9%21.1%
Zhejiang Jolly PharmaceuticalLTD (SZSE:300181)23.5%24.6%
Arctech Solar Holding (SHSE:688408)37.8%25.3%
Medley (TSE:4480)34%30.4%
Seojin SystemLtd (KOSDAQ:A178320)30.7%49.1%
Findi (ASX:FND)35.8%64.8%
Credo Technology Group Holding (NasdaqGS:CRDO)13.9%95%
Pharma Mar (BME:PHM)11.8%49%
EHang Holdings (NasdaqGM:EH)32.8%81.4%
UTI (KOSDAQ:A179900)33.1%134.6%

Click here to see the full list of 1466 stocks from our Fast Growing Companies With High Insider Ownership screener.

Here we highlight a subset of our preferred stocks from the screener.

Wonik QnC (KOSDAQ:A074600)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Wonik QnC Corporation manufactures and sells quartz and ceramic wares for semiconductor wafer production, with a market cap of ₩616.45 billion.

Operations: The company's revenue segments include MOMQ at ₩472.48 billion, Ceramic at ₩17.21 billion, Cleaning at ₩90.75 billion, and Quartz Ware from Korea, Taiwan, Germany, and the United States contributing ₩200.87 billion, ₩45.46 billion, ₩28.40 billion, and ₩15.73 billion respectively.

Insider Ownership: 19.6%

Earnings Growth Forecast: 34.1% p.a.

Wonik QnC shows potential as a growth company with high insider ownership, with earnings forecasted to grow significantly at 34.1% annually, outpacing the Korean market average. Despite trading at nearly 60% below its estimated fair value, concerns arise from low return on equity forecasts and insufficient interest coverage by earnings. Recent financial results indicate stable net income and earnings per share growth, although revenue growth remains moderate compared to high-growth benchmarks.

KOSDAQ:A074600 Earnings and Revenue Growth as at Oct 2024
KOSDAQ:A074600 Earnings and Revenue Growth as at Oct 2024

Aptus Value Housing Finance India (NSEI:APTUS)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Aptus Value Housing Finance India Limited, along with its subsidiary, operates as a housing finance company in India with a market cap of ₹174.19 billion.

Operations: The company's revenue primarily comes from providing long-term housing finance, loans against property, and refinance loans, totaling ₹10.46 billion.

Insider Ownership: 25.2%

Earnings Growth Forecast: 18% p.a.

Aptus Value Housing Finance India demonstrates growth potential with earnings forecasted to grow 18% annually, surpassing the Indian market average. Despite a price-to-earnings ratio of 27.2x, below the market's 32x, its dividend yield of 1.43% isn't well-covered by free cash flows. Recent financial activities include raising INR 4 billion through fixed-income offerings and appointing new auditors, indicating strategic financial management amidst growing revenue and net income figures for Q1 2024.

NSEI:APTUS Ownership Breakdown as at Oct 2024
NSEI:APTUS Ownership Breakdown as at Oct 2024

Quess (NSEI:QUESS)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Quess Corp Limited is a business services provider operating in India, South East Asia, the Middle East, and North America with a market cap of ₹103.96 billion.

Operations: The company's revenue segments include Product Led Business at ₹3.25 billion, Workforce Management at ₹142.76 billion, Operating Asset Management at ₹29.06 billion, and Global Technology Solutions (excluding Product Led Business) at ₹24.27 billion.

Insider Ownership: 15.8%

Earnings Growth Forecast: 24.4% p.a.

Quess Corp Limited shows strong growth potential with earnings expected to grow significantly at 24.4% annually, outpacing the Indian market. The company reported a notable increase in net income to INR 923.89 million for Q2 2024, reflecting a substantial year-on-year rise. Despite trading at a discount of 35% below its estimated fair value and having no recent substantial insider trading activity, its dividend track record remains unstable.

NSEI:QUESS Ownership Breakdown as at Oct 2024
NSEI:QUESS Ownership Breakdown as at Oct 2024

Key Takeaways

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years.

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