Reviewing ARC Document Solutions (ARC) and Cimpress N.V (CMPR)

ARC Document Solutions (NYSE: ARC) and Cimpress N.V (NASDAQ:CMPR) are both industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Profitability

This table compares ARC Document Solutions and Cimpress N.V’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ARC Document Solutions 2.72% 7.00% 2.91%
Cimpress N.V -3.36% -30.23% -1.91%

Insider & Institutional Ownership

70.7% of ARC Document Solutions shares are owned by institutional investors. Comparatively, 88.4% of Cimpress N.V shares are owned by institutional investors. 14.9% of ARC Document Solutions shares are owned by insiders. Comparatively, 11.5% of Cimpress N.V shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for ARC Document Solutions and Cimpress N.V, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ARC Document Solutions 0 0 1 1 3.50
Cimpress N.V 0 5 0 0 2.00

ARC Document Solutions presently has a consensus target price of $5.25, indicating a potential upside of 32.91%. Cimpress N.V has a consensus target price of $84.80, indicating a potential downside of 9.45%. Given ARC Document Solutions’ stronger consensus rating and higher probable upside, equities research analysts clearly believe ARC Document Solutions is more favorable than Cimpress N.V.

Earnings and Valuation

This table compares ARC Document Solutions and Cimpress N.V’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ARC Document Solutions $400.01 million 0.46 $56.98 million $0.24 16.46
Cimpress N.V $2.14 billion 1.37 $126.25 million ($2.34) -40.02

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

Volatility & Risk

ARC Document Solutions has a beta of 2.52, suggesting that its share price is 152% more volatile than the S&P 500. Comparatively, Cimpress N.V has a beta of 0.13, suggesting that its share price is 87% less volatile than the S&P 500.

Summary

ARC Document Solutions beats Cimpress N.V on 10 of the 14 factors compared between the two stocks.

About ARC Document Solutions

ARC Document Solutions, Inc. (ARC) is a document solutions provider for the architectural, engineering and construction (AEC) industry. The Company also provides document solutions to businesses of various types. ARC’s offerings include managed print services (MPS), offsite services, archive and information management (AIM), specialized color printing, Web-based document management applications, digital shipping/managed file transfer, and equipment and supplies sales. MPS is an onsite service where it installs a complete document solution platform in its customers’ offices and project sites. Its Offsite Services offering operates over 180 offsite service centers. AIM enables its customers to store information and intellectual property in a cloud-based and searchable digital archive. The Specialized Color Printing offering is focused on color printing, finishing and assembly of graphic materials. Its Web-Based Document Management Applications develop and offer tools to its customers.

About Cimpress N.V

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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