Donnelley Financial Solutions (NYSE:DFIN) versus Greenpro Capital (NASDAQ:GRNQ) Critical Analysis

Donnelley Financial Solutions (NYSE:DFIN) and Greenpro Capital (NASDAQ:GRNQ) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Earnings & Valuation

This table compares Donnelley Financial Solutions and Greenpro Capital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Donnelley Financial Solutions	$767.00 million	1.64	$32.40 million	$1.45	35.34
Greenpro Capital	$2.07 million	6.57	-$2.98 million	($3.60)	-2.09

Donnelley Financial Solutions has higher revenue and earnings than Greenpro Capital. Greenpro Capital 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.

Institutional and Insider Ownership

93.8% of Donnelley Financial Solutions shares are owned by institutional investors. Comparatively, 0.9% of Greenpro Capital shares are owned by institutional investors. 5.2% of Donnelley Financial Solutions shares are owned by insiders. Comparatively, 20.0% of Greenpro Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Donnelley Financial Solutions and Greenpro Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Donnelley Financial Solutions	4.53%	25.82%	12.29%
Greenpro Capital	-169.65%	-22.06%	-18.90%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Donnelley Financial Solutions and Greenpro Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Donnelley Financial Solutions	0	2	2	1	2.80
Greenpro Capital	1	0	0	0	1.00

Donnelley Financial Solutions presently has a consensus price target of $61.00, indicating a potential upside of 19.05%. Given Donnelley Financial Solutions’ stronger consensus rating and higher probable upside, equities analysts plainly believe Donnelley Financial Solutions is more favorable than Greenpro Capital.

Volatility and Risk

Donnelley Financial Solutions has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Greenpro Capital has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Summary

Donnelley Financial Solutions beats Greenpro Capital on 12 of the 15 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 Greenpro Capital

Greenpro Capital Corp. provides financial consulting and corporate advisory services to small and medium-size businesses primarily in Hong Kong, Malaysia, and China. It operates in two segments, Service Business and Real Estate Business. The company offers business consulting and corporate advisory services, including cross-border listing advisory, tax planning, bookkeeping, advisory and transaction, record management, and accounting outsourcing services; and venture capital related education and support services. It is also involved in the acquisition and rental of real estate properties held for investment and sale; and provision of company formation advisory, company secretarial, and financial services. In addition, the company provides corporate advisory services, such as company review, bank loan advisory, and bank products analysis, as well as loan and credit, and insurance brokerage services; and wealth planning, administration, charity, tax and legal, trusteeship and risk management, investment planning and management, and business support services, as well as asset protection and management, consolidation, and performance monitoring services. The company was formerly known as Greenpro, Inc. and changed its name to Greenpro Capital Corp. in May 2015. Greenpro Capital Corp. was incorporated in 2013 and is headquartered in Kuala Lumpur, Malaysia.