Head-To-Head Review: Brady (NYSE:BRC) versus Quad/Graphics (QUAD)

Quad/Graphics (NYSE: QUAD) and Brady (NYSE:BRC) are both small-cap industrial products companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.

Risk and Volatility

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Quad/Graphics has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Brady has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Quad/Graphics and Brady, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quad/Graphics 0 0 0 0 N/A
Brady 0 2 1 0 2.33

Brady has a consensus price target of $39.00, indicating a potential upside of 4.42%. Given Brady’s higher possible upside, analysts plainly believe Brady is more favorable than Quad/Graphics.

Valuation and Earnings

This table compares Quad/Graphics and Brady’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Quad/Graphics $4.13 billion 0.32 $107.20 million N/A N/A
Brady $1.11 billion 1.74 $95.64 million $1.75 21.34

Quad/Graphics has higher revenue and earnings than Brady.

Insider & Institutional Ownership

50.8% of Quad/Graphics shares are held by institutional investors. Comparatively, 79.2% of Brady shares are held by institutional investors. 12.1% of Quad/Graphics shares are held by company insiders. Comparatively, 15.6% of Brady shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Quad/Graphics pays an annual dividend of $1.20 per share and has a dividend yield of 4.7%. Brady pays an annual dividend of $0.83 per share and has a dividend yield of 2.2%. Brady pays out 47.4% of its earnings in the form of a dividend. Brady has raised its dividend for 32 consecutive years.

Profitability

This table compares Quad/Graphics and Brady’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quad/Graphics 2.59% 19.46% 3.78%
Brady 6.82% 14.10% 9.53%

Summary

Brady beats Quad/Graphics on 10 of the 15 factors compared between the two stocks.

About Quad/Graphics

Quad/Graphics, Inc. provides print and marketing services in the United States, Europe, Latin America, and internationally. It operates through United States Print and Related Services, and International segments. The company offers printing services, including retail inserts, publications, catalogs, special interest publications, journals, direct mail, books, directories, in-store marketing and promotion, packaging, newspapers, custom print products, other commercial and specialty printed products; and paper procurement services. It also provides marketing and other services, such as consumer insights, audience targeting, personalization, media planning and placement, process optimization, campaign planning and creation, pre-media production, videography, photography, digital and print execution, and logistics. In addition, the company manufactures ink. It serves various blue chip companies that operate in various industries; and businesses and consumers that include retailers, publishers, and direct marketers. Quad/Graphics, Inc. was founded in 1971 and is headquartered in Sussex, Wisconsin.

About Brady

Brady Corporation is a manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products and people. The Company has two segments: Identification Solutions (IDS) and Workplace Safety (WPS). The IDS segment includes identification and healthcare products, and the WPS segment includes workplace safety and compliance products. The IDS segment offers products that are manufactured under various brands, including the Brady brand, and are primarily sold through distribution to a range of maintenance, repair and operations (MRO) and original equipment manufacturing (OEM) customers, and through other channels. The WPS segment offers a range of product categories, such as safety and compliance signs, tags, and labels; informational and architectural signage; industrial warehouse and office equipment, and labor law compliance posters. Its brands include Electromark, Identicard, PromoVision, Scafftag, Seton and Emedco.

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