Financial Review: Cimpress (NASDAQ:CMPR) and Brady (NYSE:BRC)

Brady (NYSE:BRC) and Cimpress (NASDAQ:CMPR) are both mid-cap industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Earnings and Valuation

This table compares Brady and Cimpress”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brady	$1.51 billion	2.81	$189.26 million	$4.39	20.60
Cimpress	$3.74 billion	0.59	$95.87 million	$3.77	24.08

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brady	12.93%	19.01%	13.47%
Cimpress	2.57%	-18.83%	4.75%

Volatility and Risk

Brady has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Cimpress has a beta of 1.8, suggesting that its share price is 80% more volatile than the S&P 500.

Institutional & Insider Ownership

76.3% of Brady shares are owned by institutional investors. Comparatively, 77.6% of Cimpress shares are owned by institutional investors. 15.6% of Brady shares are owned by insiders. Comparatively, 10.2% of Cimpress shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Brady and Cimpress, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brady	0	0	2	0	3.00
Cimpress	0	2	3	0	2.60

Brady presently has a consensus price target of $103.00, indicating a potential upside of 13.92%. Cimpress has a consensus price target of $114.50, indicating a potential upside of 26.14%. Given Cimpress’ higher probable upside, analysts clearly believe Cimpress is more favorable than Brady.

Summary

Brady beats Cimpress on 8 of the 14 factors compared between the two stocks.

About Brady

Brady Corporation manufactures and supplies identification solutions (IDS) and workplace safety (WPS) products to identify and protect premises, products, and people in the United States and internationally. The company offers materials, printing systems, RFID, and bar code scanners for product identification, brand protection labeling, work in process labeling, finished product identification, and industrial track and trace applications; safety signs, floor-marking tapes, pipe markers, labeling systems, spill control products, lockout/tagout device, and software and services for safety compliance auditing, procedure writing, and training; and hand-held printers, wire markers, sleeves, and tags for wire identification. It also provides name tags, badges, lanyards, rigid card printing systems, and access control software for people identification; and wristbands, labels, printing systems, and other products for tracking and improving the safety of patients. In addition, the company offers workplace safety, identification, and compliance products, such as safety and compliance signs, tags, labels, and markings; informational signage and markings; asset tracking labels; facility safety and personal protection equipment; first-aid products; and other compliance products for process, government, education, construction, and utilities industries. Further, it provides stock and custom identification products; and sells related resale products. The company serves industrial and electronic manufacturing, healthcare, chemical, oil, gas, automotive, aerospace, governments, mass transit, electrical contractors, education, leisure and entertainment, telecommunications, and other industries through distributors, direct sales force, and digital channels. Brady Corporation was incorporated in 1914 and is headquartered in Milwaukee, Wisconsin.

About Cimpress

Cimpress plc provides various mass customization of printing and related products in North America, Europe, and internationally. The company operates through five segments: Vista, PrintBrothers, The Print Group, National Pen, and All Other Businesses. It offers printed and digital marketing products; internet-based canvas-print wall décor, business signage, and other printed products; business cards; and marketing materials, such as flyers and postcards, digital and marketing services, writing instruments, decorated apparel, promotional products and gifts, packaging, design services, textiles, and magazines and catalogs. The company also manufactures and markets custom writing instruments and promotional products, apparels, and gifts; and provides professional desktop publishing skill sets for local printers, print resellers, graphic artists, advertising agencies, and other customers. In addition, it offers graphic design services, do-it-yourself (DIY) design services, website services, and corporate solutions under the VistaPrint, VistaCreate, 99designs by Vista, Vista Corporate Solutions, and Vista x Wix brand names; and online printing solutions. Further, the company provides promotional and packaging products, logo apparel, books and magazines, wall decors, photo merchandise, invitations and announcements, and other categories; website design and hosting, and email marketing services, as well as order referral and other third-party offerings. The company serves various businesses, graphic designers, resellers, and printers, as well as teams, associations, groups, consumers, and families. Cimpress plc was founded in 1994 and is based in Dundalk, Ireland.