Champion Industries (OTCMKTS:CHMP) and RR Donnelley & Sons (NYSE:RRD) are both small-cap industrial products companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Volatility & Risk

Champion Industries has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, RR Donnelley & Sons has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Insider & Institutional Ownership

85.3% of RR Donnelley & Sons shares are held by institutional investors. 69.2% of Champion Industries shares are held by company insiders. Comparatively, 0.5% of RR Donnelley & Sons shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Champion Industries and RR Donnelley & Sons’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Champion Industries N/A N/A N/A
RR Donnelley & Sons -0.59% -28.57% 1.64%

Earnings & Valuation

This table compares Champion Industries and RR Donnelley & Sons’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Champion Industries N/A N/A N/A N/A N/A
RR Donnelley & Sons $6.94 billion 0.06 -$34.40 million $1.20 4.75

Champion Industries has higher earnings, but lower revenue than RR Donnelley & Sons.

Dividends

RR Donnelley & Sons pays an annual dividend of $0.12 per share and has a dividend yield of 2.1%. Champion Industries does not pay a dividend. RR Donnelley & Sons pays out 10.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations for Champion Industries and RR Donnelley & Sons, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Champion Industries 0 0 0 0 N/A
RR Donnelley & Sons 0 0 1 0 3.00

RR Donnelley & Sons has a consensus price target of $8.00, suggesting a potential upside of 40.35%. Given RR Donnelley & Sons’ higher probable upside, analysts clearly believe RR Donnelley & Sons is more favorable than Champion Industries.

Summary

RR Donnelley & Sons beats Champion Industries on 7 of the 11 factors compared between the two stocks.

About Champion Industries

Champion Industries, Inc. is engaged in the commercial printing and office products and furniture supply business in regional markets east of the Mississippi River. The company also publishes Herald-Dispatch daily newspaper in Huntington, also provides a full range of office products, office furniture and office design services. It also provides printing services ranging from the simplest to the most complex jobs, including business cards, books, tags, labels, brochures, posters and multi-part, continuous and snap-out business forms and offers complete bindery and letterpress services. The company operates its business in two segments: Commercial Printing and Office Products, Office Furniture and Office Design. Champion Industries was founded on July 1, 1992 and is headquartered in Huntington, WV.

About RR Donnelley & Sons

R.R. Donnelley & Sons Company, an integrated communications company, enables organizations to create, manage, deliver, and optimize their multichannel marketing and business communications. The company operates through Variable Print, Strategic Services, and International segments. It offers commercial and digital print, direct mail, statement printing, logistics, sourcing, and digital and creative services, as well as produces and sells labels, forms, educational testing materials, inserts, and books. The company also provides supply chain management and outsourcing capabilities, including product configuration, packaging, customized kitting, and order fulfillment for technology, medical device, and other companies; and transactional print and outsourcing services, such as inbound and outbound document processing, creative, research and analytics, financial management, and other services for legal providers, as well as insurance, telecommunications, utilities, retail, and financial services companies. It has operations in the United States, Asia, Canada, Latin America, and Europe. The company was founded in 1864 and is based in Chicago, Illinois.

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