Despite the lack of mortgage originators, several companies that offer solutions and services to the industry made a recent ranking of The 100 Best Small Companies.
BusinessWeek's latest ranking showed that the ninth best company was Kanbay International, a provider of infotech outsourcing services. During 2004, its revenues increased 70% to 182.6 million, and net income more than doubled to $27.4 million. Over a three-year period, its profits have jumped on average 138% and its return on capital has been 19%.
"Its bang-up numbers make Kanbay one of the few in the outsourcing biz that's growing fast while also maintaining profitability," the magazine said.
The "ace" in Kanbay's pocket is reportedly that it focuses on the financial services industry -- its "cozy" relationship with HSBC Holdings accounted for 55% of Kanbay's 2004 revenue.
Kanbay is expanding its customer base by targeting additional clients that can contribute $5 million or more in annual revenue. Fifteen clients with such characteristics were added last year and analysts are expecting 21 this year, which "could mean even bigger numbers ahead," according to BusinessWeek.
The list is crafted by analyzing 2,200 publicly traded companies with revenues of $50 million to $1.5 billion a year and then ranking them by sales, earnings growth, and return on capital over three years. Contenders must have a market cap of at least $25 million and stock that trades at no less than $5 a share, and must not have had recent earnings disappointments.
At No. 23 was Websense, a provider of network security, management and user surveillance. The company's profits have jumped 89% on average over the past three years. However, last year's No. 13 rank was better for Websense, which recently reported that among the most popular Internet scams, are fake mortgage and loan sites that lead people to believe they are applying for a loan but steal the personal information, such as social security numbers and credit card information, once it is submitted.
SS&C Technologies, which offers software for financial management and investment for several industries including real estate and lending institutions, came in at No. 53. The Connecticut-based company's profits have surged 67% over the past three years and it return on capital has averaged 15%.
In No. 92 was TALX Corp., which says that thousands of organizations ranging from government agencies to major mortgage lenders use its employment and income verification service. On average over the past three years, the St. Louis, Mo.-based organization's sales and profits have respectively soared 41% and 46%, and its return on capital has been about 8%.