Contrasting Donnelley Financial Solutions (NYSE:DFIN) and Net Medical Xpress Solutions (OTCMKTS:NMXS)

Donnelley Financial Solutions (NYSE:DFIN) and Net Medical Xpress Solutions (OTCMKTS:NMXS) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.

Analyst Recommendations

This is a breakdown of recent ratings for Donnelley Financial Solutions and Net Medical Xpress Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Donnelley Financial Solutions	0	1	3	0	2.75
Net Medical Xpress Solutions	0	0	0	0	0.00

Donnelley Financial Solutions currently has a consensus price target of $70.67, suggesting a potential upside of 36.92%. Given Donnelley Financial Solutions’ stronger consensus rating and higher probable upside, research analysts plainly believe Donnelley Financial Solutions is more favorable than Net Medical Xpress Solutions.

Risk and Volatility

Donnelley Financial Solutions has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, Net Medical Xpress Solutions has a beta of -1.56, meaning that its stock price is 256% less volatile than the S&P 500.

Valuation and Earnings

This table compares Donnelley Financial Solutions and Net Medical Xpress Solutions”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	1.82	$92.40 million	$2.83	18.24
Net Medical Xpress Solutions	N/A	N/A	N/A	N/A	N/A

Donnelley Financial Solutions has higher revenue and earnings than Net Medical Xpress Solutions.

Profitability

This table compares Donnelley Financial Solutions and Net Medical Xpress Solutions’ 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%
Net Medical Xpress Solutions	N/A	N/A	N/A

Insider & Institutional Ownership

93.8% of Donnelley Financial Solutions shares are held by institutional investors. 11.9% of Donnelley Financial Solutions shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Donnelley Financial Solutions beats Net Medical Xpress Solutions on 10 of the 10 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 Net Medical Xpress Solutions

Net Medical Xpress Solutions, Inc. provides telemedicine solutions for hospitals, nursing homes, specialty hospitals, and other medical facilities. It provides services in the areas, such as teleneurology, teleneurosurgery, telecardiology, teleorthopedics, telewoundcare, and telenephrology. The company offers a Telemed telemedicine platform, a system used to build a customized telemedicine management system for clients; digital paper, development engine, single pane of glass software, FDA cleared image viewers, and integration connectivity with approximately 43 hospitals based EMR systems; and telemedicine video conferencing equipment and USB clinical tools. It also provides physicians; administrative services, such as credentialing, program management, and call center management; and integration services, including electronic prescription software, prior authorization software, laboratory and malpractice insurance, large scale provider scheduling, medical translation, and rounding services. In addition, the company offers staffing and recruiting services, and diagnostic and clinical services, as well as amazon cloud services. The company was formerly known as New Mexico Software, Inc. and changed its name to Net Medical Xpress Solutions, Inc. in January 2013. Net Medical Xpress Solutions, Inc. was founded in 1995 and is based in Albuquerque, New Mexico.