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2 Small Cap Geography Plays

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Small caps, as an asset class, are typically associated with US based companies garnering a majority of sales from the US vs. abroad. This compares to their large cap brethren which are typically more global with a higher percentage of foreign sales e.g. Coca Cola and McDonald’s. In times of geopolitical uncertainty, some investors flock to small caps as a hedge against global turmoil, reasoning that the US economy is comparatively more stable with better visibility.

But sometimes there are exceptions so here we highlight two small cap outliers, both currently with Outperform ratings, which are growing from international sales. Our first small cap takes us to the chilly waters of the North Sea. Perhaps an understated fact is that Norway is now the largest natural gas supplier to the EU, overtaking Russia as a consequence of the war with Ukraine. 

MIND Technology, Inc (MIND - Free Report) , is headquartered in The Woodlands, TX, and provides technology solutions for the oceanographic, hydrographic, seismic, and maritime security industries. The company’s products include seismic source acquisitions systems, positioning systems, and marine sensors which are utilized in marine seismic surveys, energy exploration, and various research activities. For the six months ended July 2025, over 56% of MIND Technology’s (MIND - Free Report) revenue originated from Norway. So literally it is Norway or the highway.

MIND Technology posted second-quarter fiscal 2026 net income of 24 cents per share against a net loss of 11 cents per share in the prior-year quarter. The company’s revenues of $13.6 million denoted an increase of 35% from $10 million in the year-ago period.

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The other small cap takes us to the balmy confines of the Middle East, specifically the UAE, Saudi Arabia, and Qatar. Perma-Pipe International Holdings, Inc. (PPIH - Free Report) , headquartered in Rolling Meadows, IL, specializes in the manufacture and sale of specialty piping systems and leak detection systems.
Perma Pipe’s (PPIH - Free Report) product offerings include insulated and jacketed district heating and cooling piping systems, primary and secondary containment piping systems for hazardous materials, and anti-corrosion coatings for pipelines.

The company recently received approval from Aramco which expands their TAM (total addressable market) and gives them access to the Saudi Vision 2030 objectives. The company has been benefitting from petrochemical investments, oil pipeline expansions, and public infrastructure projects throughout the Middle East.

Q2 net sales of $47.9 million marked a 27.7% increase from $37.5 million in the same period last year. The top-line growth was attributed to stronger sales volumes in both the Middle East and North America. On a non-GAAP basis, adjusted income before tax was $4.9 million vs. $5.6 million posted a year earlier due to strategic investments including a new manufacturing facility in Qatar. As of FY ending 1/31/25, 67% of sales were to foreign customers



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