Head-To-Head Analysis: Donnelley Financial Solutions (NYSE:DFIN) vs. Powell Max (NASDAQ:PMAX)

Powell Max (NASDAQ:PMAX) and Donnelley Financial Solutions (NYSE:DFIN) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Earnings & Valuation

This table compares Powell Max and Donnelley Financial Solutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Powell Max	$46.62 million	0.60	N/A	N/A	N/A
Donnelley Financial Solutions	$802.10 million	2.14	$82.20 million	$3.20	18.57

Donnelley Financial Solutions has higher revenue and earnings than Powell Max.

Analyst Recommendations

This is a summary of current ratings and price targets for Powell Max and Donnelley Financial Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Powell Max	0	0	0	0	0.00
Donnelley Financial Solutions	0	0	3	0	3.00

Donnelley Financial Solutions has a consensus price target of $76.33, indicating a potential upside of 28.46%. Given Donnelley Financial Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe Donnelley Financial Solutions is more favorable than Powell Max.

Insider & Institutional Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Powell Max	N/A	N/A	N/A
Donnelley Financial Solutions	12.06%	22.70%	11.33%

Summary

Donnelley Financial Solutions beats Powell Max on 10 of the 10 factors compared between the two stocks.

About Powell Max

Powell Max Limited is a financial communications services provider. Powell Max Limited is based in JERSEY CITY, N.J.

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.