A Boston study of global companies named two Canadian firms among the top 10 in their respective categories, in terms of shareholder return. Seven companies made the grade last year.

Boston Consulting Group’s annual global study, “Spotlight on Growth: The Role of Growth in Achieving Superior Value Creation,” analyzes total shareholder return at 1,056 global companies across 14 major industries for the five-year period from 2001 through 2005. This is the eighth year BCG has ranked the leading firms in delivering TSR and assessed the factors driving or impeding value creation.

Only two Canadian companies were ranked among the top value creators in the report. “The performance of Canadian firms reflects the challenge of finding the right growth opportunities in a limited marketplace,” says Peter Stanger, a senior partner who manages BCG’s Toronto office. “Canadian firms often need to look globally to continue to generate value.

“Given this, the question for many profitable Canadian firms is whether they are going to be acquirers or targets. The recent merger and acquisition wars in the mining sector reflect the fact that with high commodity prices, many firms are flush with cash and are looking to expand into new markets or buy up competitor assets.”

Cameco, the world’s largest uranium producer, was the seventh-ranked company in the mining and minerals category, with an average annual TSR of 57.4%. Cameco accounts for 20% of the world’s production and its uranium is used to generate electricity in nuclear energy plants around the world.

Alimentation Couche-Tard, a convenience store chain operator, ranked ninth in the retail category with an average annual TSR of 45.8%. The company has over 5,000 stores in North America and Asia operating under the Couche-Tard, Mac’s and Circle K banners.

After years of retrenchment and restructuring, many leading global companies are now flush with capital and looking to grow but are finding limited opportunities in their existing markets, the report says.

“Profits as a share of GDP are at record-high levels and many companies find themselves in a situation where they can fund far more growth than their traditional core markets can sustain,” says Stanger. “As a result, we’ve seen a lot of capital chasing new growth opportunities. This has led to a big jump in M&A activity, both in Canada and globally, as companies look for opportunities to create value for their shareholders.”