Bankrate (NYSE: RATE) and Donnelley Financial Solutions (NYSE:DFIN) are both small-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Risk and Volatility

Bankrate has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, Donnelley Financial Solutions has a beta of 2.77, meaning that its share price is 177% more volatile than the S&P 500.

Valuation and Earnings

This table compares Bankrate and Donnelley Financial Solutions’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bankrate $434.16 million 2.89 -$34.13 million ($0.25) -56.00
Donnelley Financial Solutions $983.50 million 0.68 $59.10 million $0.99 19.98

Donnelley Financial Solutions has higher revenue and earnings than Bankrate. Bankrate is trading at a lower price-to-earnings ratio than Donnelley Financial Solutions, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

47.3% of Bankrate shares are owned by institutional investors. Comparatively, 85.7% of Donnelley Financial Solutions shares are owned by institutional investors. 6.3% of Bankrate shares are owned by insiders. Comparatively, 1.6% of Donnelley Financial Solutions shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Bankrate and Donnelley Financial Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bankrate -4.61% 6.50% 4.08%
Donnelley Financial Solutions 3.26% 32.44% 4.78%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Bankrate and Donnelley Financial Solutions, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bankrate 0 3 2 0 2.40
Donnelley Financial Solutions 0 3 1 0 2.25

Bankrate currently has a consensus target price of $14.00, indicating a potential upside of 0.00%. Donnelley Financial Solutions has a consensus target price of $23.33, indicating a potential upside of 17.96%. Given Donnelley Financial Solutions’ higher possible upside, analysts clearly believe Donnelley Financial Solutions is more favorable than Bankrate.

Summary

Donnelley Financial Solutions beats Bankrate on 9 of the 14 factors compared between the two stocks.

Bankrate Company Profile

Bankrate, Inc. is a publisher, aggregator and distributor of personal finance content on the Internet. The Company provides consumers personal finance editorial content across multiple vertical categories, including mortgages, deposits, credit cards, senior care and other personal finance categories. The Company’s segments include Banking, Credit Cards, Senior Care and Other. The Company provides a range of digital display advertising formats. The Company is also engaged in the sale of print advertisements and the distribution (or syndication) of its editorial content. The Company offers branded content that educates consumers and financial professionals on a range of personal finance topics. The Company provides a platform for consumers searching for competitive rates on mortgages, deposits and money market accounts.

Donnelley Financial Solutions Company Profile

Donnelley Financial Solutions, Inc. is a financial communications services company that supports global capital markets compliance and transaction needs for its corporate clients and their advisors (such as law firms and investment bankers), and global investment markets compliance and analytics needs for mutual fund companies, variable annuity providers and broker/dealers. The Company provides content management, multi-channel content distribution, data management and analytics services, collaborative workflow and business reporting tools, and translations and other language services in support of its clients’ communications requirements. The Company operates in two business segments: United States and International. The United States segment consists of three reporting units: capital markets, investment markets, and language solutions and other. The International segment includes its operations in Asia, Europe, Latin America and Canada.

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