Critical Analysis: Multi-Color Corporation (LABL) vs. Deluxe Corporation (DLX)
Multi-Color Corporation (NASDAQ: LABL) and Deluxe Corporation (NYSE:DLX) are both industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.
This table compares Multi-Color Corporation and Deluxe Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Multi-Color Corporation and Deluxe Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Multi-Color Corporation||$929.24 million||1.41||$158.28 million||$3.47||22.09|
|Deluxe Corporation||$1.91 billion||1.72||$453.00 million||$4.68||14.50|
Deluxe Corporation has higher revenue and earnings than Multi-Color Corporation. Deluxe Corporation is trading at a lower price-to-earnings ratio than Multi-Color Corporation, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and recommmendations for Multi-Color Corporation and Deluxe Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Multi-Color Corporation currently has a consensus target price of $75.67, indicating a potential downside of 1.28%. Given Multi-Color Corporation’s higher probable upside, equities research analysts plainly believe Multi-Color Corporation is more favorable than Deluxe Corporation.
Volatility & Risk
Multi-Color Corporation has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Deluxe Corporation has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.
Multi-Color Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Deluxe Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 1.8%. Multi-Color Corporation pays out 5.8% of its earnings in the form of a dividend. Deluxe Corporation pays out 25.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Insider & Institutional Ownership
76.3% of Multi-Color Corporation shares are held by institutional investors. Comparatively, 92.7% of Deluxe Corporation shares are held by institutional investors. 19.4% of Multi-Color Corporation shares are held by insiders. Comparatively, 2.4% of Deluxe Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Deluxe Corporation beats Multi-Color Corporation on 10 of the 14 factors compared between the two stocks.
Multi-Color Corporation Company Profile
Multi-Color Corporation (Multi-Color) is engaged in label solutions business, supporting brands, including producers of home and personal care, wine and spirit, food and beverage, healthcare and specialty consumer products. The Company serves international brand owners in North, Central and South America, Europe, Australia, New Zealand, South Africa and China and Southeast Asia with a range of label technologies in Pressure Sensitive, Glue-Applied (Cut and Stack), In-Mold, Shrink Sleeve and Heat Transfer. The Company also provides a range of print methods, including flexographic, lithographic, rotogravure, letterpress and digital, and in-house prepress services. The Company provides graphics and pre-press services for its customers at all of its manufacturing locations. These services include the conversion of customer digital files and artwork into proofs, production of print layouts and printing plates, and product mock ups and samples for market research.
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).
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