Deluxe Corporation (NYSE: DLX) and Cimpress N.V (NASDAQ:CMPR) are both mid-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.
Analyst Ratings
This is a breakdown of recent ratings for Deluxe Corporation and Cimpress N.V, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Deluxe Corporation | 0 | 0 | 0 | 0 | N/A |
| Cimpress N.V | 0 | 5 | 0 | 0 | 2.00 |
Cimpress N.V has a consensus target price of $84.80, indicating a potential downside of 5.50%. Given Cimpress N.V’s higher possible upside, analysts clearly believe Cimpress N.V is more favorable than Deluxe Corporation.
Risk and Volatility
Deluxe Corporation has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Cimpress N.V has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500.
Profitability
This table compares Deluxe Corporation and Cimpress N.V’s 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% |
| Cimpress N.V | -3.36% | -30.23% | -1.91% |
Earnings and Valuation
This table compares Deluxe Corporation and Cimpress N.V’s top-line revenue, earnings per share 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 | 14.42 |
| Cimpress N.V | $2.14 billion | 1.31 | $126.25 million | ($2.34) | -38.35 |
Deluxe Corporation has higher revenue, but lower earnings than Cimpress N.V. Cimpress N.V is trading at a lower price-to-earnings ratio than Deluxe Corporation, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
92.7% of Deluxe Corporation shares are held by institutional investors. Comparatively, 98.6% of Cimpress N.V shares are held by institutional investors. 2.4% of Deluxe Corporation shares are held by company insiders. Comparatively, 11.5% of Cimpress N.V shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Dividends
Deluxe Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 1.8%. Cimpress N.V does not pay a dividend. Deluxe Corporation pays out 25.6% of its earnings in the form of a dividend.
Summary
Deluxe Corporation beats Cimpress N.V on 8 of the 13 factors compared between the two stocks.
About Deluxe Corporation
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).
About Cimpress N.V
Cimpress N.V., formerly Vistaprint N.V., is a technology driven company, which aggregates through the Internet, large volumes of small, individually customized orders for a spectrum of print, signage, apparel and similar products. The Company operates through segments, which include Vistaprint business unit, Upload and Print business units and All Other business units. The Vistaprint business unit segment represents its Vistaprint-branded Websites and its Webs-branded business. The Vistaprint business unit also sells standard business cards, and focuses on product categories, which include signage, marketing materials, and promotional products and apparel. The Upload and Print business units segment includes the druck.at, Exagroup, Easyflyer, Printdeal, Pixartprinting, Tradeprint, and WIRmachenDRUCK branded businesses. The All Other business units segment includes operations of its Albumprinter and Most of World business units and Corporate Solutions business unit.
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