LSC Communications (NASDAQ: LKSD) and Multi-Color Corporation (NASDAQ:LABL) are both small-cap industrials companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitabiliy, valuation, earnings and risk.

Profitability

This table compares LSC Communications and Multi-Color Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LSC Communications -0.12% -1.59% -0.21%
Multi-Color Corporation 6.61% 16.99% 5.78%

Dividends

Multi-Color Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 0.2%. LSC Communications does not pay a dividend. Multi-Color Corporation pays out 5.6% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares LSC Communications and Multi-Color Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
LSC Communications $3.60 billion 0.16 $324.00 million N/A N/A
Multi-Color Corporation $923.30 million 1.48 $160.89 million $3.58 22.53

LSC Communications has higher revenue and earnings than Multi-Color Corporation.

Insider and Institutional Ownership

76.9% of Multi-Color Corporation shares are held by institutional investors. 19.4% of Multi-Color Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for LSC Communications and Multi-Color Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LSC Communications 0 4 1 0 2.20
Multi-Color Corporation 1 3 0 0 1.75

LSC Communications currently has a consensus price target of $24.00, suggesting a potential upside of 39.94%. Multi-Color Corporation has a consensus price target of $74.25, suggesting a potential downside of 7.94%. Given LSC Communications’ stronger consensus rating and higher probable upside, equities research analysts clearly believe LSC Communications is more favorable than Multi-Color Corporation.

Summary

Multi-Color Corporation beats LSC Communications on 8 of the 14 factors compared between the two stocks.

LSC Communications Company Profile

LSC Communications, Inc. focuses on traditional and digital print, print-related services and office products. The Company’s segments are Print and Office Products. The Company, through its Print segment, provides a range of print product offerings, which include magazines, catalogs, retail inserts, books and directories. In addition to printed products, the Company also provides a number of print-related services, such as supply chain management, mail services, e-book formatting and distribution services. Its Print segment services over 3,000 customers, including publishers of magazines, books and directories, online retailers, catalogers, mass merchandisers and contract stationers. In its Office Products segment, the Company manufactures and sells a range of branded and private label products, primarily within the core categories, including filing products; note-taking products; binder products; tax and stock forms, and envelopes.

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.

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