Deluxe (NYSE:DLX – Get Free Report) and Quest Resource (NASDAQ:QRHC – Get Free Report) are both small-cap industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Analyst Ratings
This is a breakdown of recent recommendations for Deluxe and Quest Resource, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Deluxe | 0 | 2 | 1 | 1 | 2.75 |
| Quest Resource | 1 | 1 | 0 | 0 | 1.50 |
Deluxe currently has a consensus price target of $31.00, suggesting a potential upside of 35.12%. Given Deluxe’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Deluxe is more favorable than Quest Resource.
Risk and Volatility
Deluxe has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Quest Resource has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500.
Profitability
This table compares Deluxe and Quest Resource’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Deluxe | 4.91% | 23.51% | 6.12% |
| Quest Resource | -7.07% | -14.75% | -3.78% |
Institutional and Insider Ownership
93.9% of Deluxe shares are held by institutional investors. Comparatively, 48.2% of Quest Resource shares are held by institutional investors. 5.4% of Deluxe shares are held by company insiders. Comparatively, 19.6% of Quest Resource shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Deluxe and Quest Resource”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Deluxe | $2.13 billion | 0.49 | $82.10 million | $2.25 | 10.20 |
| Quest Resource | $248.05 million | 0.09 | -$15.38 million | ($0.82) | -1.35 |
Deluxe has higher revenue and earnings than Quest Resource. Quest Resource is trading at a lower price-to-earnings ratio than Deluxe, indicating that it is currently the more affordable of the two stocks.
Summary
Deluxe beats Quest Resource on 14 of the 15 factors compared between the two stocks.
About Deluxe
Deluxe Corporation provides technology-enabled solutions to enterprises, small businesses, and financial institutions in the United States, Canada, and Australia. It operates through Merchant Services, B2B Payments, Data Solutions, and Print segments. The Merchant Services offers credit and debit card authorization and payment systems, as well as processing services primarily to small and medium-sized retail and service businesses. The B2B Payments segment provides treasury management solutions, including remittance and lockbox processing, remote deposit capture, automated receivables management, payment processing, and cash application, as well as automated payables management, such as medical payment and deluxe payment exchange. The Data solutions segment offers data-driven marketing solutions, financial institution profitability reporting, and business incorporation services. The Print segment provides printed personal and business checks, printed business forms, business accessories, and promotional products. It sells through multi-channel sales and marketing, and scalable partnerships. The company was formerly known as Deluxe Check Printers, Incorporated and changed its name to Deluxe Corporation in 1988. Deluxe Corporation was founded in 1915 and is headquartered in Minneapolis, Minnesota.
About Quest Resource
Quest Resource Holding Corporation, together with its subsidiaries, provides solutions for the reuse, recycling, and disposal of various waste streams and recyclables in the United States. The company provides disposal and recycling services for motor oil and automotive lubricants, oil filters, scrap tires, oily water, goods destruction, food waste, meat renderings, cooking oil and grease trap waste, plastics, cardboard, metal, glass, mixed paper, construction debris, as well as a large variety of regulated and non-regulated solid, liquid, and gas wastes. It offers antifreeze and windshield washer fluid, dumpster and compacting equipment, and other minor ancillary services. In addition, the company offers landfill diversion services. Its services focus on the waste streams and recyclables from big box, grocers, and other retailers; automotive maintenance, quick lube, dealerships, and collision repair; transportation, logistics, and internal fleet operators; manufacturing plants; multi-family and commercial properties; restaurant chains and food operations; and construction and demolition projects. The company markets its services to automotive, manufacturing, hospitality and retail, construction and demolition, and commercial and multi-family property management industries through direct sales force and strategic partnerships. The company was formerly known as Infinity Resources Holdings Corp. and changed its name to Quest Resource Holding Corporation in October 2013. Quest Resource Holding Corporation is headquartered in The Colony, Texas.
Receive News & Ratings for Deluxe Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Deluxe and related companies with MarketBeat.com's FREE daily email newsletter.
