With several thousand stocks listed on the TSX, how do you choose which stock to buy? While experts have their opinions, it is not practical to go through the balance sheet of each and every company to understand its potential. A much better idea is to identify the top companies that have the ability to deliver consistent returns and growth.

Below, I have listed two TSX stocks that hold the best future potential and are priced fairly now. Let's understand their fundamentals to make an informed decision.

Restaurant Brands International for its resilient business

As one of the largest global quick service restaurant companies in the world, Restaurant Brands International (TSX: QSR) is very popular among Canadian investors. Restaurant Brands International (RBI) owns four prominent fast food brands, including Tim Hortons, Popeyes, Burger King and Firehouse Subs, with 30,000 restaurants across 120 countries.

The company is known for its massive size and diversified portfolio of fast-food brands. This allows it to generate substantial revenue while still pursuing growth prospects. RBI has ambitious plans to grow its restaurant portfolio to 40,000 in the next five years. It has made several strategic investments in 2024 to reach this goal. In May, RBI acquired the Carrols Restaurant Group Inc., the largest Burger King franchisee in the USA, and in June, it acquired Tims China and Popeyes China for $15 million.

Restaurant Brands International's strategic investments have let the stock deliver bullish returns through the year. This has been backed by solid financial performance. As of the latest quarter, RBI's consolidated system-wide sales have grown 3.2% year-on-year with $577 million in income from operations in Q3 FY24. As the company consolidates its newly acquired restaurants and reinvests in its brands, its sales growth will likely accelerate.

Fortis Inc. for its diversified business

Fortis Inc. (TSX: FTS) is a North American utility company that's most well-known for its diversified business, predictable cash flows, and market position. The company owns and manages 8 electricity and natural gas distribution and transmission companies in the United States and Canada. It also owns power generation and distribution assets in the Caribbean, including the Cayman Islands, Belize, and Turks and Caicos.

One of the biggest advantages of Fortis Inc. is that it owns rate-regulated utility assets, which provides the company with stable cash flow. The company reinvests the cash generated to boost its earnings growth and make regular dividend payouts. Fortis has invested $2.3 billion in various capital projects and completed two large acquisitions in the United States in recent years, strengthening its market position.

The company's commitment to strategic investments has led to strong third quarter financial results. Its net earnings as of Q3 FY24 stand at $420 million, up from $394 million in the previous year. Following this, Fortis Inc. has decided to increase its fourth quarter dividend by 4% and announced a $26 billion capital expenditure plan.

These investments, which include major transmission projects and the development of battery storage systems, are expected to increase Fortis' base growth from $38.8 billion in 2024 to $53 billion by 2029.

Bottom line

Both Restaurant Brands International and Fortis Inc. are top-performing companies with a high but stable growth rate they have sustained over the years. These companies have solid fundamentals and are driven by growth initiatives providing them with strong cash flows. These companies reinvest their gains into expansion and acquisition strategies, allowing them to deliver lucrative growth and dividend income for investors.