Donnelley Financial Solns (DFIN) & Applied DNA Sciences (APDN) Critical Review

Donnelley Financial Solns (NYSE: DFIN) and Applied DNA Sciences (NASDAQ:APDN) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Valuation & Earnings

This table compares Donnelley Financial Solns and Applied DNA Sciences’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Donnelley Financial Solns $1.00 billion 0.56 $9.70 million $0.96 17.47
Applied DNA Sciences $4.75 million 9.38 -$12.85 million N/A N/A

Donnelley Financial Solns has higher revenue and earnings than Applied DNA Sciences.

Profitability

This table compares Donnelley Financial Solns and Applied DNA Sciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Donnelley Financial Solns 0.82% 22.48% 3.95%
Applied DNA Sciences -232.92% -150.52% -119.62%

Insider & Institutional Ownership

89.7% of Donnelley Financial Solns shares are owned by institutional investors. Comparatively, 11.9% of Applied DNA Sciences shares are owned by institutional investors. 1.6% of Donnelley Financial Solns shares are owned by company insiders. Comparatively, 21.4% of Applied DNA Sciences shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Donnelley Financial Solns has a beta of 2.31, suggesting that its stock price is 131% more volatile than the S&P 500. Comparatively, Applied DNA Sciences has a beta of -0.98, suggesting that its stock price is 198% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Donnelley Financial Solns and Applied DNA Sciences, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Donnelley Financial Solns 0 3 1 0 2.25
Applied DNA Sciences 0 0 1 0 3.00

Donnelley Financial Solns currently has a consensus target price of $23.33, suggesting a potential upside of 39.14%. Applied DNA Sciences has a consensus target price of $5.00, suggesting a potential upside of 237.84%. Given Applied DNA Sciences’ stronger consensus rating and higher probable upside, analysts clearly believe Applied DNA Sciences is more favorable than Donnelley Financial Solns.

Summary

Donnelley Financial Solns beats Applied DNA Sciences on 7 of the 11 factors compared between the two stocks.

Donnelley Financial Solns Company Profile

Donnelley Financial Solutions, Inc. provides financial communications, and data and analytics services for the investment and capital markets worldwide. It offers communication tools and services to allow its clients to comply with ongoing regulatory filings; and communications services to create, manage, and deliver registration statements, prospectuses, proxies, and other communications to regulators and investors. The company also provides virtual data rooms to facilitate the deal management requirements of capital markets, and mergers and acquisitions transactions; and data and analytics services that help professionals uncover intelligence from financial disclosure contained within public filings made with the Securities and Exchange Commission. In addition, it offers language solutions, including translation, editing, interpreting, proof-reading, and multilingual typesetting; and specialized content services, such as transcreation, copywriting, linguistic validation by subject matter experts, transcription, voice-over, subtitling, and localization, as well as application testing and quality assurance. The company serves global capital markets compliance and transaction needs for its corporate clients and their advisors, such as law firms and investment bankers; and investment management compliance and analytics needs for mutual fund companies, variable annuity providers, and broker/dealers. Donnelley Financial Solutions, Inc. is based in Chicago, Illinois.

Applied DNA Sciences Company Profile

Applied DNA Sciences, Inc. provides biotechnology based security solutions for supply chain security, brand protection, and law enforcement applications in the United States, Europe, Asia, and internationally. The company's supply chain security and product authentication solutions include SigNature molecular tags that are ingredients used to fortify brand protection efforts and strengthen supply chain security, as well as mark, track, and convict criminals; SigNature T molecular tags, which are tagging and authentication systems for use in brand protection efforts and raw material source compliance programs; and fiberTyping, a test of native cotton fiber DNA. It also provides DNAnet, a DNA marker to link evidence and offenders to specific crime scenes; Beacon locked optical markers, which create a protected covert screening tool that can be adapted to packaging, security labels, and high?value assets through inks, varnishes, and coatings; and SigNify IF portable DNA reader that provides real-time authentication of in the field?DNA. In addition, the company offers digitalDNA, a software platform to manage the security of company-marked goods from point of marking to point of authentication or validation to end of life; and DNA Transfer Systems, which offer remote Internet access for real-time monitoring. Further, it provides CertainT Supply Chain Platform that provides proof of product claims for materials, items, or products; and Triathlon PCR systems that allow for the large-scale production of specific DNA sequences. Applied DNA Sciences, Inc. has a cooperative research and development agreement with the U.S. Army Research, Development and Engineering Command's Edgewood Chemical Biological Center; and a collaboration agreement with Colorcon, Inc. The company was formerly known as Datalink Systems, Inc. and changed its name to Applied DNA Sciences, Inc. in 2002. Applied DNA Sciences, Inc. was founded in 1983 and is headquartered in Stony Brook, New York.

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