The Sage Group plc isn’t the only top-performing growth stock making investors wealthy…

The Sage Group plc (LON: SGE) shares have almost doubled over the last three years. However, Edward Sheldon has identified a small-cap stock that has performed even better.

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Many tech stocks across the world have performed very well over the last year. While the popular FAANG stocks (Facebook, Amazon.Com, Apple, Netflix and Google) in the US have received plenty of attention, under-the-radar tech stocks listed in the UK have also rewarded their shareholders handsomely. Here’s a look at two such stocks making their investors wealthy.

The Sage Group

FTSE 100-listed Sage (LSE: SGE) provides integrated accounting, payroll and payments solutions to businesses of all shapes and sizes around the world. The stock has been an excellent performer in the recent past. This year, the share price is up 20%. Over a three-year investment horizon, the stock has almost doubled.

The group released final FY2017 results this morning, and stated that its transformation programme, which began in June 2015, is now complete. The payroll specialist recorded organic revenue growth of 6.6% for the year, and enjoyed a 10.3% rise in organic operating profit. It stated that 78% of its revenue now comes from recurring sources. Adjusted earnings per share for the year rose 7.4% to 33.1p, significantly beating analysts’ estimates of 29.8p. The dividend was lifted by a healthy 9% to 15.4p per share.

Do the shares still offer value after such a strong run? At the current share price of 784p, Sage trades on a trailing P/E ratio of 23.7. The dividend yield is just under 2%. While those metrics perhaps look a little expensive, I feel that the company has momentum at present. Indeed, Chief Executive Stephen Kelly today commented: “We now have the leadership, organisational alignment, brand and comprehensive suite of cloud solutions, to accelerate momentum in our markets.” Analysts expect further revenue and earnings growth in coming years and the upwards trend of the chart looks promising. As a result, I believe there could be further gains to come from Sage.

Quixant

Turning to the small-cap area of the market, £283m market cap Quixant (LSE: QXT) has been another wealth-generating machine for tech investors over the last few years. The group designs and manufactures advanced hardware and software solutions for the global gaming industry. The stock is only up 21% this year, but since listing on the AIM market in 2013 at a price of 46p, investors have been rewarded with a spectacular return of over 800%. Can Quixant continue to make its shareholders wealthy? I believe so.

It appears to have strong momentum right now. Last year, revenue rose 116% and earnings per share jumped 47%. This year, City analysts expect top-line growth of 18% and an earnings rise of 20%. Half-year results released in September were excellent, with management stating: “The demand for our gaming platforms and monitors remains strong and we are confident in achieving market expectations for the full year.”

The stock currently trades on a P/E ratio of 28, which is clearly high, yet in my opinion, not outrageously high. That level of valuation suggests to me that investors acknowledge the exciting growth story, yet have not got carried away. For long-term investors, I believe there could be further gains to come. Broker Finncap recently lifted its price target to 500p.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be considered so you should consider taking independent financial advice.

Edward Sheldon has no position in any shares mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Alphabet (A shares), Amazon, Apple, Facebook, and Netflix. The Motley Fool UK has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool UK has recommended Sage Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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