Flight Centre Travel Group (OTCMKTS:FGETF) and Donnelley Financial Solutions (NYSE:DFIN) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

96.5% of Donnelley Financial Solutions shares are held by institutional investors. 9.6% of Donnelley Financial Solutions shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Flight Centre Travel Group and Donnelley Financial Solutions, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Flight Centre Travel Group 0 0 0 0 N/A
Donnelley Financial Solutions 0 0 2 0 3.00

Donnelley Financial Solutions has a consensus target price of $18.50, indicating a potential upside of 349.03%. Given Donnelley Financial Solutions’ higher probable upside, analysts clearly believe Donnelley Financial Solutions is more favorable than Flight Centre Travel Group.

Profitability

This table compares Flight Centre Travel Group and Donnelley Financial Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Flight Centre Travel Group N/A N/A N/A
Donnelley Financial Solutions 4.30% 14.87% 3.90%

Earnings and Valuation

This table compares Flight Centre Travel Group and Donnelley Financial Solutions’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Flight Centre Travel Group N/A N/A N/A N/A N/A
Donnelley Financial Solutions $874.70 million 0.16 $37.60 million $1.10 3.75

Donnelley Financial Solutions has higher revenue and earnings than Flight Centre Travel Group.

Risk & Volatility

Flight Centre Travel Group has a beta of 0.09, suggesting that its stock price is 91% less volatile than the S&P 500. Comparatively, Donnelley Financial Solutions has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500.

Summary

Donnelley Financial Solutions beats Flight Centre Travel Group on 9 of the 9 factors compared between the two stocks.

About Flight Centre Travel Group

Flight Centre Travel Group Limited provides travel retailing services for the leisure, corporate, and wholesale travel sectors in Australia, New Zealand, Europe, the Middle East, Africa, the Americas, Asia, and Internationally. The company offers leisure travel services for the niche sectors, as well as mass, youth, premium, and cruise markets; and corporate travel services for organizations of various sizes across industries. It also supplies products to its national and international network, or travel retail outlets. In addition, the company offers other travel related services, including foreign currency exchange and travel academies; recruitment marketing and bike retailing; and employee benefit services. It provides its services primarily under the Flight Centre brand, as well as other travel brands, such as Student Flights, Travel Associates, My Adventure Travel, Liberty Travel, Infinity Holidays, GOGO Vacations, FCm Travel Solutions, Corporate Traveller, Stage and Screen, cievents, and Campus Travel. The company was formerly known as Flight Centre Limited and changed its name to Flight Centre Travel Group Limited in November 2013. Flight Centre Travel Group Limited was incorporated in 1987 and is headquartered in Brisbane, Australia.

About Donnelley Financial Solutions

Donnelley Financial Solutions, Inc. operates as a risk and compliance solutions company in the United States, Europe, Asia, Canada, and Latin America. The Company provides regulatory filing and deal solutions through its software-as-a-service, technology-enabled services, and print and distribution solutions to public and private companies, mutual funds, and other regulated investment firms to serve their regulatory and compliance needs. It offers technology-enabled filing solutions for corporate clients within its capital markets offerings that allow U.S. public companies to comply with applicable U.S. Securities and Exchange Commission regulations, including filing agent services, digital document creation, and online content management tools that support their corporate financial transactions and regulatory reporting; solutions to facilitate clients' communications with their shareholders; and virtual data rooms and other deal management solutions. The company also provides technology-enabled filing solutions for alternative investment and insurance investment companies, including cloud-based tools for creating and filing high-quality regulatory documents, as well as solutions for investors designed to improve the speed and accuracy of their access to investment information. Donnelley Financial Solutions, Inc. was founded in 1983 and is headquartered in Chicago, Illinois.

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