Head to Head Survey: Deluxe (NYSE:DLX) and Quest Resource (NASDAQ:QRHC)

Quest Resource (NASDAQ:QRHC) and Deluxe (NYSE:DLX) are both small-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Profitability

This table compares Quest Resource and Deluxe’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quest Resource	-7.07%	-14.75%	-3.78%
Deluxe	4.91%	23.51%	6.12%

Volatility and Risk

Quest Resource has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500. Comparatively, Deluxe has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Valuation & Earnings

This table compares Quest Resource and Deluxe”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quest Resource	$250.22 million	0.10	-$15.38 million	($0.82)	-1.40
Deluxe	$2.13 billion	0.51	$82.10 million	$2.25	10.64

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.

Institutional and Insider Ownership

48.2% of Quest Resource shares are held by institutional investors. Comparatively, 93.9% of Deluxe shares are held by institutional investors. 19.6% of Quest Resource shares are held by company insiders. Comparatively, 5.4% of Deluxe shares are held by company 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 Recommendations

This is a summary of current recommendations and price targets for Quest Resource and Deluxe, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quest Resource	1	1	0	0	1.50
Deluxe	0	2	1	1	2.75

Deluxe has a consensus price target of $31.00, suggesting a potential upside of 29.46%. Given Deluxe’s stronger consensus rating and higher possible upside, analysts plainly believe Deluxe is more favorable than Quest Resource.

Summary

Deluxe beats Quest Resource on 13 of the 14 factors compared between the two stocks.

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.

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.