LSC Communications (LKSD) vs. Cimpress (CMPR) Financial Analysis

LSC Communications (NYSE: LKSD) and Cimpress (NASDAQ:CMPR) are both industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Risk & Volatility

LSC Communications has a beta of 5.95, meaning that its share price is 495% more volatile than the S&P 500. Comparatively, Cimpress has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500.

Profitability

This table compares LSC Communications and Cimpress’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LSC Communications 0.28% 24.72% 3.35%
Cimpress -0.85% -10.71% -0.55%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for LSC Communications and Cimpress, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LSC Communications 0 4 0 0 2.00
Cimpress 0 3 1 0 2.25

LSC Communications presently has a consensus price target of $24.00, suggesting a potential upside of 51.80%. Cimpress has a consensus price target of $102.50, suggesting a potential downside of 16.44%. Given LSC Communications’ higher probable upside, research analysts plainly believe LSC Communications is more favorable than Cimpress.

Valuation and Earnings

This table compares LSC Communications and Cimpress’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LSC Communications $3.65 billion 0.15 $106.00 million $0.29 54.52
Cimpress $2.14 billion 1.78 -$71.71 million ($0.70) -175.24

LSC Communications has higher revenue and earnings than Cimpress. Cimpress is trading at a lower price-to-earnings ratio than LSC Communications, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

84.4% of LSC Communications shares are held by institutional investors. 2.5% of LSC Communications shares are held by insiders. Comparatively, 11.8% of Cimpress shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

LSC Communications pays an annual dividend of $1.00 per share and has a dividend yield of 6.3%. Cimpress does not pay a dividend. LSC Communications pays out 344.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

LSC Communications beats Cimpress on 10 of the 15 factors compared between the two stocks.

LSC Communications Company Profile

LSC Communications, Inc. focuses on traditional and digital print, print-related services and office products. The Company’s segments are Print and Office Products. The Company, through its Print segment, provides a range of print product offerings, which include magazines, catalogs, retail inserts, books and directories. In addition to printed products, the Company also provides a number of print-related services, such as supply chain management, mail services, e-book formatting and distribution services. Its Print segment services over 3,000 customers, including publishers of magazines, books and directories, online retailers, catalogers, mass merchandisers and contract stationers. In its Office Products segment, the Company manufactures and sells a range of branded and private label products, primarily within the core categories, including filing products; note-taking products; binder products; tax and stock forms, and envelopes.

Cimpress Company Profile

Cimpress N.V., formerly Vistaprint N.V., is a technology driven company, which aggregates through the Internet, large volumes of small, individually customized orders for a spectrum of print, signage, apparel and similar products. The Company operates through segments, which include Vistaprint business unit, Upload and Print business units and All Other business units. The Vistaprint business unit segment represents its Vistaprint-branded Websites and its Webs-branded business. The Vistaprint business unit also sells standard business cards, and focuses on product categories, which include signage, marketing materials, and promotional products and apparel. The Upload and Print business units segment includes the druck.at, Exagroup, Easyflyer, Printdeal, Pixartprinting, Tradeprint, and WIRmachenDRUCK branded businesses. The All Other business units segment includes operations of its Albumprinter and Most of World business units and Corporate Solutions business unit.

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