Team (NYSE:TISI) versus Deluxe (NYSE:DLX) Critical Review

Team (NYSE:TISI) and Deluxe (NYSE:DLX) are both small-cap industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, dividends and analyst recommendations.

Institutional & Insider Ownership

46.6% of Team shares are held by institutional investors. Comparatively, 93.9% of Deluxe shares are held by institutional investors. 8.8% of Team 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Team	-3.38%	N/A	-3.76%
Deluxe	4.91%	23.51%	6.12%

Valuation and Earnings

This table compares Team and Deluxe”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Team	$896.48 million	0.09	-$49.21 million	($8.22)	-2.07
Deluxe	$2.13 billion	0.54	$82.10 million	$2.25	11.11

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

Volatility & Risk

Team has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Deluxe has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Team and Deluxe, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Team	1	0	0	0	1.00
Deluxe	0	3	0	0	2.00

Summary

Deluxe beats Team on 11 of the 12 factors compared between the two stocks.

About Team

Team, Inc., together with its subsidiaries, provides a suite of conventional, specialized, and proprietary mechanical, heat-treating, and inspection services in the United States, Canada, Europe, and internationally. It operates through Inspection and Heat Treating (IHT) and Mechanical Services (MS) segments. The IHT segment offers non-destructive evaluation and testing, radiographic testing, ultrasonic testing, magnetic particle inspection, liquid penetrant inspection, positive material identification, electromagnetic testing, alternating current field measurement, and eddy current testing services. This segment also provides long-range guided ultrasonic, phased array ultrasonic testing, terminals and storage inspection and management program, rope access, mechanical and pipeline integrity, and heat treating services. The MS segment offers engineered composite repair, emissions control/compliance, hot tapping, valve insertion, field machining, bolted joint integrity, vapor barrier plug and weld testing, and valve management services, as well as leak repair services. Team, Inc. was founded in 1973 and is headquartered in Sugar Land, 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.