RR Donnelley & Sons (NYSE:RRD) and Champion Industries (OTCMKTS:CHMP) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
Risk and Volatility
RR Donnelley & Sons has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Champion Industries has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.
Valuation & Earnings
This table compares RR Donnelley & Sons and Champion Industries’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|RR Donnelley & Sons||$6.94 billion||0.06||-$34.40 million||$1.20||5.21|
Champion Industries has lower revenue, but higher earnings than RR Donnelley & Sons.
Institutional & Insider Ownership
81.6% of RR Donnelley & Sons shares are owned by institutional investors. 0.5% of RR Donnelley & Sons shares are owned by insiders. Comparatively, 69.2% of Champion Industries 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.
This is a summary of current ratings and recommmendations for RR Donnelley & Sons and Champion Industries, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|RR Donnelley & Sons||0||0||1||0||3.00|
RR Donnelley & Sons presently has a consensus price target of $8.00, suggesting a potential upside of 28.00%. Given RR Donnelley & Sons’ higher probable upside, equities research analysts clearly believe RR Donnelley & Sons is more favorable than Champion Industries.
RR Donnelley & Sons pays an annual dividend of $0.12 per share and has a dividend yield of 1.9%. Champion Industries does not pay a dividend. RR Donnelley & Sons pays out 10.0% of its earnings in the form of a dividend.
This table compares RR Donnelley & Sons and Champion Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|RR Donnelley & Sons||-0.59%||-28.57%||1.64%|
RR Donnelley & Sons beats Champion Industries on 7 of the 11 factors compared between the two stocks.
RR Donnelley & Sons Company Profile
R.R. Donnelley & Sons Company, an integrated communications company, enables organizations to create, manage, deliver, and optimize their multichannel marketing and business communications. The company operates through Variable Print, Strategic Services, and International segments. It offers commercial and digital print, direct mail, statement printing, logistics, sourcing, and digital and creative services, as well as produces and sells labels, forms, educational testing materials, inserts, and books. The company also provides supply chain management and outsourcing capabilities, including product configuration, packaging, customized kitting, and order fulfillment for technology, medical device, and other companies; and transactional print and outsourcing services, such as inbound and outbound document processing, creative, research and analytics, financial management, and other services for legal providers, as well as insurance, telecommunications, utilities, retail, and financial services companies. It has operations in the United States, Asia, Canada, Latin America, and Europe. The company was founded in 1864 and is based in Chicago, Illinois.
Champion Industries Company Profile
Champion Industries, Inc. is engaged in the commercial printing and office products and furniture supply business in regional markets east of the Mississippi River. The company also publishes Herald-Dispatch daily newspaper in Huntington, also provides a full range of office products, office furniture and office design services. It also provides printing services ranging from the simplest to the most complex jobs, including business cards, books, tags, labels, brochures, posters and multi-part, continuous and snap-out business forms and offers complete bindery and letterpress services. The company operates its business in two segments: Commercial Printing and Office Products, Office Furniture and Office Design. Champion Industries was founded on July 1, 1992 and is headquartered in Huntington, WV.
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