Donnelley Financial Solutions (NYSE:DFIN – Get Free Report) and Criteo (NASDAQ:CRTO – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.
Risk and Volatility
Donnelley Financial Solutions has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Criteo has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for Donnelley Financial Solutions and Criteo, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Donnelley Financial Solutions | 0 | 0 | 3 | 0 | 3.00 |
| Criteo | 1 | 3 | 5 | 0 | 2.44 |
Valuation & Earnings
This table compares Donnelley Financial Solutions and Criteo”s 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 | 1.91 | $92.40 million | $2.83 | 19.18 |
| Criteo | $1.93 billion | 0.71 | $111.57 million | $2.39 | 9.94 |
Criteo has higher revenue and earnings than Donnelley Financial Solutions. Criteo 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 Criteo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Donnelley Financial Solutions | 10.87% | 20.03% | 10.17% |
| Criteo | 7.10% | 16.91% | 8.53% |
Insider and Institutional Ownership
93.8% of Donnelley Financial Solutions shares are held by institutional investors. Comparatively, 94.3% of Criteo shares are held by institutional investors. 4.3% of Donnelley Financial Solutions shares are held by insiders. Comparatively, 1.7% of Criteo shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Donnelley Financial Solutions beats Criteo on 9 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 Criteo
Criteo S.A., a technology company, provides marketing and monetization services on the open Internet in North and South America, Europe, the Middle East, Africa, and the Asia-Pacific. The company's Criteo Shopper Graph, which derives clients' proprietary commerce data, such as transaction activity on their digital properties. It also offers Criteo AI Engine solutions, including lookalike finder, recommendation, and predictive bidding algorithms; recommendation algorithms, dynamic creative optimization+, sponsored product placement algorithms, and other product placement algorithms. The company's technology comprises data synchronization, storage, and analysis of distributed computing infrastructure in various geographies, as well as fast data collection and retrieval using multi-layered caching infrastructure; and experimentation platform, an offline/online testing platform to enhance the capabilities and effectiveness of prediction models. In addition, it provides Criteo Marketing Solutions that allow commerce companies to address various marketing goals by engaging their consumers with personalized ads across the web, mobile, and offline store environments; and Criteo Retail Media solutions, which allows retailers to generate advertising revenues from consumer brands, and/or to drive sales for themselves, by monetizing their data and audiences through personalized ads, either on their own digital property or on the open Internet. Further, the company offers real-time advertising technology and trading infrastructure, delivering advanced media buying, selling, and packaging capabilities for media owners, agencies, performance advertisers, and third-party AdTech platforms. It serves companies in digital retail, travel, and classifieds sectors. Criteo S.A. was incorporated in 2005 and is headquartered in Paris, France.
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