Contrasting Quad Graphics (QUAD) and ARC Document Solutions (ARC)
Quad Graphics (NYSE: QUAD) and ARC Document Solutions (NYSE:ARC) 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, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.
Quad Graphics pays an annual dividend of $1.20 per share and has a dividend yield of 6.4%. ARC Document Solutions does not pay a dividend. Quad Graphics pays out 76.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional and Insider Ownership
52.8% of Quad Graphics shares are held by institutional investors. Comparatively, 71.0% of ARC Document Solutions shares are held by institutional investors. 12.1% of Quad Graphics shares are held by insiders. Comparatively, 14.9% of ARC Document Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Quad Graphics and ARC Document Solutions’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Quad Graphics||$4.22 billion||0.23||$474.80 million||$1.57||12.02|
|ARC Document Solutions||$400.01 million||0.42||$56.98 million||$0.24||15.04|
Quad Graphics has higher revenue and earnings than ARC Document Solutions. Quad Graphics is trading at a lower price-to-earnings ratio than ARC Document Solutions, indicating that it is currently the more affordable of the two stocks.
This table compares Quad Graphics and ARC Document Solutions’ 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%|
Risk and Volatility
Quad Graphics has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500. Comparatively, ARC Document Solutions has a beta of 2.5, suggesting that its stock price is 150% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Quad Graphics and ARC Document Solutions, 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|
ARC Document Solutions has a consensus price target of $5.25, suggesting a potential upside of 45.43%. Given ARC Document Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe ARC Document Solutions is more favorable than Quad Graphics.
ARC Document Solutions beats Quad Graphics on 10 of the 16 factors compared between the two stocks.
Quad Graphics Company Profile
Quad/Graphics, Inc. is a marketing services provider. The Company’s segments are United States Print and Related Services, International and Corporate. The United States Print and Related Services segment consists of the Company’s United States printing operations. The United States Print and Related Services segment includes retail inserts, publications, catalogs, special interest publications, journals, direct mail, books, directories, in-store marketing and promotion, packaging, newspapers, custom print products, other commercial and specialty printed products, and global paper procurement. The United States Print and Related Services segment also includes marketing and other complementary services, including marketing strategy and data insights. The International segment consists of the Company’s printing operations in Europe and Latin America, including operations in England, France, Germany and Poland, as well as investments in printing operations in Brazil and India.
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.
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