ARC Document Solutions (NYSE: ARC) and Auxilio (NASDAQ:AUXO) are both small-cap industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.

Profitability

This table compares ARC Document Solutions and Auxilio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ARC Document Solutions 2.72% 7.00% 2.91%
Auxilio 0.03% 0.16% 0.06%

Institutional & Insider Ownership

71.9% of ARC Document Solutions shares are owned by institutional investors. 14.9% of ARC Document Solutions shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for ARC Document Solutions and Auxilio, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ARC Document Solutions 0 0 1 1 3.50
Auxilio 0 0 3 0 3.00

ARC Document Solutions currently has a consensus target price of $5.25, indicating a potential upside of 49.15%. Auxilio has a consensus target price of $7.38, indicating a potential upside of 113.15%. Given Auxilio’s higher possible upside, analysts clearly believe Auxilio is more favorable than ARC Document Solutions.

Valuation & Earnings

This table compares ARC Document Solutions and Auxilio’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ARC Document Solutions $400.01 million 0.41 $56.98 million $0.24 14.67
Auxilio $63.94 million 0.51 $4.73 million N/A N/A

ARC Document Solutions has higher revenue and earnings than Auxilio.

Summary

ARC Document Solutions beats Auxilio on 10 of the 13 factors compared between the two stocks.

ARC Document Solutions Company Profile

ARC Document Solutions, Inc. (ARC) is a document solutions provider for the architectural, engineering and construction (AEC) industry. The Company also provides document solutions to businesses of various types. ARC’s offerings include managed print services (MPS), offsite services, archive and information management (AIM), specialized color printing, Web-based document management applications, digital shipping/managed file transfer, and equipment and supplies sales. MPS is an onsite service where it installs a complete document solution platform in its customers’ offices and project sites. Its Offsite Services offering operates over 180 offsite service centers. AIM enables its customers to store information and intellectual property in a cloud-based and searchable digital archive. The Specialized Color Printing offering is focused on color printing, finishing and assembly of graphic materials. Its Web-Based Document Management Applications develop and offer tools to its customers.

Auxilio Company Profile

Auxilio, Inc. is engaged in the business of providing outsourced print management services and cyber security professional services to the healthcare industry, and also to financial institutions, gaming and other industries. The Company also provides information technology (IT) security consulting services. Its products and services include managed print services group and data security group. The managed print services group provides workflow solutions and is a program with guaranteed savings. After the assessment and upon engagement, it charges the customer on a per print basis. This charge covers the entire print management process and includes the placement of a trained resident team on-site to manage the entire process. The data security group serves the security needs in healthcare by providing Security Process and Program Development, Regulatory and Penetration Assessments, Incident and Breach Response, and Delphiis IT Risk Manager Software as a Service (SaaS) Solutions.

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