While small cap shares carry a lot more risk than blue chips, the potential returns on offer are vastly superior. This could make it well worth having a little exposure to this side of the market if your risk tolerance allows.
But which small caps should you be looking at? Two to get better acquainted with are as follows:
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Damstra Holdings Ltd (ASX: DTC)
The first small cap to look at is Damstra. It is an integrated workplace management solutions provider.
Damstra provides businesses with a cloud-based workplace management platform that tracks, manages, and protects their workers and assets.
Demand for its offering has been growing strongly in recent years and has continued in FY 2021. For example, in February Damstra reported a 29.6% increase in revenue to $13.3 million.
Analysts at Shaw and Partners are positive on the company. They currently have a buy rating and $1.93 price target on its shares. This compares to the latest Damstra share price of $1.10.
Whispir Lrd (ASX: WSP)
Another small cap to look at is Whispir. It is a technology company that provides a communications workflow platform automating interactions between organisations and people.
There's a very strong chance that you'll have come across its offering in your day to day life. Uses included COVID-19 communications by the government at the height of the pandemic and website chat pop ups that are designed to reduce call centre volumes.
Demand continues to grow for Whispir's platform, which is underpinning solid recurring revenue growth. In fact, just this week the company released its third quarter update and revealed further growth in this key metric.
Analysts at Ord Minnett have been pleased with its performance this year. As a result, they currently have a buy rating and $4.25 price target on its shares. This compares to the latest Whispir share price of $3.32.
