Reviewing HeartCore Enterprises (NASDAQ:HTCR) & Donnelley Financial Solutions (NYSE:DFIN)

Donnelley Financial Solutions (NYSE:DFIN) and HeartCore Enterprises (NASDAQ:HTCR) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.

Insider and Institutional Ownership

93.8% of Donnelley Financial Solutions shares are held by institutional investors. Comparatively, 1.7% of HeartCore Enterprises shares are held by institutional investors. 4.3% of Donnelley Financial Solutions shares are held by company insiders. Comparatively, 64.2% of HeartCore Enterprises 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.

Volatility and Risk

Donnelley Financial Solutions has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, HeartCore Enterprises has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500.

Valuation & Earnings

This table compares Donnelley Financial Solutions and HeartCore Enterprises”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Donnelley Financial Solutions	$781.90 million	2.19	$92.40 million	$3.02	20.52
HeartCore Enterprises	$30.41 million	0.34	-$1.48 million	($0.14)	-3.35

Donnelley Financial Solutions has higher revenue and earnings than HeartCore Enterprises. HeartCore Enterprises 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Donnelley Financial Solutions	11.56%	21.80%	11.10%
HeartCore Enterprises	-11.18%	76.78%	23.06%

Analyst Ratings

This is a summary of current ratings for Donnelley Financial Solutions and HeartCore Enterprises, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Donnelley Financial Solutions	0	0	3	0	3.00
HeartCore Enterprises	0	0	0	0	0.00

Donnelley Financial Solutions currently has a consensus price target of $71.33, indicating a potential upside of 15.11%. Given Donnelley Financial Solutions’ stronger consensus rating and higher probable upside, research analysts plainly believe Donnelley Financial Solutions is more favorable than HeartCore Enterprises.

Summary

Donnelley Financial Solutions beats HeartCore Enterprises on 10 of the 14 factors compared between the two stocks.

About Donnelley Financial Solutions

Donnelley Financial Solutions, Inc. provides innovative software and technology-enabled financial regulatory and compliance solutions in the United States, Asia, Europe, Canada, and internationally. It operates through four segments: Capital Markets Software Solutions (CM-SS); Capital Markets Compliance and Communications Management (CM-CCM); Investment Companies Software Solutions (IC-SS); and Investment Companies Compliance and Communications Management (IC-CCM). The CM-SS segment provides Venue and ActiveDisclosure solutions to public and private companies to manage public and private transactional and compliance processes; collaborate; and tag, validate, and file SEC documents. The CM-CCM segment offers tech-enabled services and print and distribution solutions to public and private companies for deal solutions and SEC compliance requirements. The IC-SS segment provides clients with the Arc Suite platform that contains a comprehensive suite of cloud-based solutions, including ArcDigital, ArcReporting, ArcPro, and ArcRegulatory, as well as services that enable storage and management of compliance and regulatory information in a self-service and central repository for accessing, assembling, editing, translating, rendering, and submitting documents to regulators and investors. The IC-CCM segment offers tech-enabled solutions for creating, filing and distributing regulatory communications, and solutions for investor communications, as well as XBRL and iXBRL-formatted filings pursuant for Investment Company Act through the SEC’s EDGAR system. This segment also provides turnkey proxy services, including discovery, planning and implementation, print and mail management, solicitation, tabulation services, stockholder meeting review, and expert support. Donnelley Financial Solutions, Inc. was founded in 1983 and is headquartered in Chicago, Illinois.

About HeartCore Enterprises

HeartCore Enterprises, Inc., a software development company, provides Software as a Service solutions to enterprise customers in Japan and internationally. Its customer experience management platform includes marketing, sales, service, and content management systems, as well as other tools and integrations, which enable companies to enhance the customer experience and drive engagement. The company also operates a digital transformation business that offers customers with robotics process automation, process mining, and task mining to accelerate the digital transformation of enterprises. In addition, it provides consulting services; and education, services, and support solutions. The company was founded in 2009 and is headquartered in Tokyo, Japan.