As Business Services companies, ARC Document Solutions Inc. (NYSE:ARC) and Deluxe Corporation (NYSE:DLX) are our subject to compare. And more specifically their risk, institutional ownership, analyst recommendations, profitability, dividends, earnings and valuation.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ARC Document Solutions Inc. | 399.48M | 0.28 | 4.90M | 0.16 | 14.74 |
| Deluxe Corporation | 1.97B | 1.11 | 176.28M | 4.14 | 10.39 |
We can see in table 1 the earnings per share, top-line revenue and valuation of ARC Document Solutions Inc. and Deluxe Corporation. Deluxe Corporation has higher revenue and earnings than ARC Document Solutions Inc. The company with a higher price-to-earnings ratio is presently more expensive of the two stocks. ARC Document Solutions Inc. is presently more expensive than Deluxe Corporation, because it’s trading at a higher price-to-earnings ratio.
Profitability
Table 2 has ARC Document Solutions Inc. and Deluxe Corporation’s return on equity, return on assets and net margins.
| Net Margins | Return on Equity | Return on Assets | |
| ARC Document Solutions Inc. | -1.23% | -3.7% | -1.5% |
| Deluxe Corporation | 8.95% | 15.1% | 6.9% |
Volatility and Risk
ARC Document Solutions Inc. is 96.00% more volatile than S&P 500 because the company has a beta of 1.96. Competitively, Deluxe Corporation is 0.00% less volatile than S&P 500, because of the 1 beta.
Liquidity
ARC Document Solutions Inc. has a Current Ratio of 1.5 and a Quick Ratio of 1.2. Competitively, Deluxe Corporation’s Current Ratio is 1.3 and has 1.1 Quick Ratio. ARC Document Solutions Inc.’s better ability to pay short and long-term obligations than Deluxe Corporation.
Dividends
On the other side Deluxe Corporation pays an annual dividend of $1.2 per share. It’s dividend yield is 2.71%. ARC Document Solutions Inc. does not pay a dividend.
Analyst Ratings
Ratings and Recommmendations for ARC Document Solutions Inc. and Deluxe Corporation can be find in next table.
| Sell Ratings | Hold Ratings | Buy Ratings | Rating Score | |
| ARC Document Solutions Inc. | 0 | 0 | 1 | 3.00 |
| Deluxe Corporation | 0 | 1 | 0 | 2.00 |
The average target price of ARC Document Solutions Inc. is $5, with potential upside of 104.92%. Competitively Deluxe Corporation has a average target price of $50, with potential upside of 5.84%. Based on the results delivered earlier, ARC Document Solutions Inc. is looking more favorable than Deluxe Corporation, analysts opionion.
Institutional and Insider Ownership
ARC Document Solutions Inc. and Deluxe Corporation has shares owned by institutional investors as follows: 63.7% and 93.2%. 1.6% are ARC Document Solutions Inc.’s share owned by insiders. Competitively, 0.6% are Deluxe Corporation’s share owned by insiders.
Performance
In this table we provide the Week, Month, Quarter, Half Year, Year and YTD Performance of both pretenders.
| Performance (W) | Performance (M) | Performance (Q) | Performance (HY) | Performance (Y) | Performance (YTD) | |
| ARC Document Solutions Inc. | -4.56% | 0.44% | -28.13% | 9.52% | -4.56% | -9.8% |
| Deluxe Corporation | -14.7% | -14.43% | -26.84% | -37.41% | -40.09% | -44.1% |
For the past year ARC Document Solutions Inc. was less bearish than Deluxe Corporation.
Summary
Deluxe Corporation beats ARC Document Solutions Inc. on 11 of the 16 factors.
Deluxe Corporation provides checks, forms, marketing solutions, accessories, and other products and services for small businesses and financial institutions. It operates through three segments: Small Business Services, Financial Services, and Direct Checks. The company provides checks; printed forms, such as deposit tickets, billing forms, work orders, job proposals, purchase orders, invoices, and personnel forms, as well as computer forms and check registers; and accessories and other products comprising envelopes, office supplies, stamps, and labels, as well as checkbook covers. It also offers Web services, which include logo and Web design; hosting and other Web services; search engine optimization; and marketing programs, including email, mobile, and social media, and other self-service marketing solutions. In addition, the company provides fraud protection and security, online and offline payroll services, and electronic checks; and promotional solutions, such as postcards, brochures, retail packaging supplies, apparel, greeting cards, and business cards. Further, it offers financial technology solutions to larger financial institutions, which comprise data-driven marketing solutions, including outsourced marketing campaign targeting and execution; treasury management solutions; and digital enablement solutions, including loyalty and rewards programs. It operates in the United States, Canada, Europe, and North and South America. The company was formerly known as Deluxe Check Printers, Incorporated and changed its name to Deluxe Corporation in 1988. Deluxe Corporation was founded in 1915 and is headquartered in Shoreview, Minnesota.