Financial Contrast: Deluxe (NYSE:DLX) and Uniroyal Global Engineered Products (OTCMKTS:UNIR)

Deluxe (NYSE:DLX) and Uniroyal Global Engineered Products (OTCMKTS:UNIR) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Analyst Ratings

This is a summary of current recommendations and price targets for Deluxe and Uniroyal Global Engineered Products, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deluxe	0	1	1	0	2.50
Uniroyal Global Engineered Products	0	0	0	0	0.00

Deluxe currently has a consensus target price of $23.00, suggesting a potential upside of 44.54%. Given Deluxe’s stronger consensus rating and higher possible upside, equities analysts clearly believe Deluxe is more favorable than Uniroyal Global Engineered Products.

Earnings and Valuation

This table compares Deluxe and Uniroyal Global Engineered Products”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deluxe	$2.12 billion	0.34	$52.80 million	$1.25	12.73
Uniroyal Global Engineered Products	N/A	N/A	N/A	N/A	N/A

Deluxe has higher revenue and earnings than Uniroyal Global Engineered Products.

Risk and Volatility

Deluxe has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, Uniroyal Global Engineered Products has a beta of 2.09, meaning that its stock price is 109% more volatile than the S&P 500.

Profitability

This table compares Deluxe and Uniroyal Global Engineered Products’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deluxe	2.64%	21.20%	4.91%
Uniroyal Global Engineered Products	N/A	N/A	N/A

Institutional and Insider Ownership

93.9% of Deluxe shares are held by institutional investors. 5.6% of Deluxe shares are held by company insiders. Comparatively, 59.9% of Uniroyal Global Engineered Products shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Deluxe beats Uniroyal Global Engineered Products on 8 of the 10 factors compared between the two stocks.

About Deluxe

Deluxe Corporation provides technology-enabled solutions to enterprises, small businesses, and financial institutions in the United States, Canada, and Australia. It operates through Merchant Services, B2B Payments, Data Solutions, and Print segments. The Merchant Services offers credit and debit card authorization and payment systems, as well as processing services primarily to small and medium-sized retail and service businesses. The B2B Payments segment provides treasury management solutions, including remittance and lockbox processing, remote deposit capture, automated receivables management, payment processing, and cash application, as well as automated payables management, such as medical payment and deluxe payment exchange. The Data solutions segment offers data-driven marketing solutions, financial institution profitability reporting, and business incorporation services. The Print segment provides printed personal and business checks, printed business forms, business accessories, and promotional products. It sells through multi-channel sales and marketing, and scalable partnerships. 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 Minneapolis, Minnesota.

About Uniroyal Global Engineered Products

Uniroyal Global Engineered Products, Inc. develops, manufactures, and distributes vinyl coated fabrics used in transportation, residential, hospitality, health care, office furniture, and automotive applications. Its products in the automotive industry are used primarily in seating, door panels, head and arm rests, security shades, and trim components. The company’s non-automotive applications include outdoor seating for utility and sports vehicles; and sheeting used in medical and toxic hazard protection, personal protection, moisture barriers, stroller and nursery equipment, and decorative surface applications. It also manufactures textured coatings and polymer films. The company offers its products primarily under the Naugahyde, BeautyGard, Flameblocker, Spirit Millennium, Ambla, Amblon, Velbex, Cirroflex, Plastolene, and Vynide brands. It provides its products through sales persons, agents, and distributors in North America, Europe, Asia, and internationally. Uniroyal Global Engineered Products, Inc. was founded in 1992 and is based in Sarasota, Florida.