Deluxe Corporation (NYSE: DLX) and Quad Graphics (NYSE:QUAD) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Deluxe Corporation and Quad Graphics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Deluxe Corporation 0 0 0 0 N/A
Quad Graphics 0 0 1 0 3.00

Risk & Volatility

Deluxe Corporation has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Quad Graphics has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500.

Profitability

This table compares Deluxe Corporation and Quad Graphics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Deluxe Corporation 11.98% 27.83% 11.83%
Quad Graphics 1.92% 22.79% 3.97%

Valuation and Earnings

This table compares Deluxe Corporation and Quad Graphics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Deluxe Corporation $1.91 billion 1.71 $453.00 million $4.68 14.44
Quad Graphics $4.22 billion 0.23 $474.80 million $1.57 11.93

Quad Graphics has higher revenue and earnings than Deluxe Corporation. Quad Graphics is trading at a lower price-to-earnings ratio than Deluxe Corporation, indicating that it is currently the more affordable of the two stocks.

Dividends

Deluxe Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 1.8%. Quad Graphics pays an annual dividend of $1.20 per share and has a dividend yield of 6.4%. Deluxe Corporation pays out 25.6% of its earnings in the form of a dividend. Quad Graphics pays out 76.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

91.4% of Deluxe Corporation shares are owned by institutional investors. Comparatively, 51.7% of Quad Graphics shares are owned by institutional investors. 2.4% of Deluxe Corporation shares are owned by insiders. Comparatively, 9.3% of Quad Graphics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Deluxe Corporation beats Quad Graphics on 8 of the 14 factors compared between the two stocks.

Deluxe Corporation Company Profile

Deluxe Corporation is a provider of payment solutions. The Company provides a suite of customer life cycle management solutions to its customers across multiple channels. The Company operates in three segments: Small Business Services segment, Financial Services segment and Direct Checks segment. The Company’s product and service offerings consist of checks, forms and accessories, and other products. The forms offered by the Company include deposit tickets and check registers. Its accessories and other products include checkbook covers and stamps. The Small Business Services segment is a provider of printed forms to small businesses. The Financial Services segment provides products and services to financial institution clients and offers a suite of financial technology (FinTech) solutions. The Direct Checks segment is a direct-to-consumer check supplier. It also offers fraud protection and security services, online and offline payroll services, and electronic checks (e-checks).

Quad Graphics Company Profile

Quad/Graphics, Inc. is a marketing services provider. The Company’s segments are United States Print and Related Services, International and Corporate. The United States Print and Related Services segment consists of the Company’s United States printing operations. The United States Print and Related Services segment includes retail inserts, publications, catalogs, special interest publications, journals, direct mail, books, directories, in-store marketing and promotion, packaging, newspapers, custom print products, other commercial and specialty printed products, and global paper procurement. The United States Print and Related Services segment also includes marketing and other complementary services, including marketing strategy and data insights. The International segment consists of the Company’s printing operations in Europe and Latin America, including operations in England, France, Germany and Poland, as well as investments in printing operations in Brazil and India.

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