OmniComm Systems (OTCMKTS:OMCM) vs. Deluxe (NYSE:DLX) Critical Review

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

Valuation and Earnings

This table compares Deluxe and OmniComm Systems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deluxe	$2.13 billion	0.51	$82.10 million	$2.25	10.58
OmniComm Systems	$27.10 million	2.44	$3.69 million	N/A	N/A

Deluxe has higher revenue and earnings than OmniComm Systems.

Profitability

This table compares Deluxe and OmniComm Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deluxe	4.91%	23.51%	6.12%
OmniComm Systems	-2.67%	-13.18%	-6.95%

Risk and Volatility

Deluxe has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, OmniComm Systems has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Deluxe and OmniComm Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deluxe	0	3	0	0	2.00
OmniComm Systems	0	0	0	0	0.00

Institutional & Insider Ownership

93.9% of Deluxe shares are owned by institutional investors. 5.4% of Deluxe shares are owned by insiders. Comparatively, 48.9% of OmniComm Systems 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.

Summary

Deluxe beats OmniComm Systems on 8 of the 10 factors compared between the two stocks.

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.

About OmniComm Systems

OmniComm Systems, Inc., a healthcare technology company, provides Web-based electronic data capture (EDC), and eClinical software and services for pharmaceutical and biotechnology companies, clinical research organizations (CROs), and other clinical trial sponsors worldwide. It offers TrialMaster, which allows organizations conducting clinical trials to collect and manage the data over the Internet; TrialOne Phase I Clinic Automation, a software application suite that provides clinical trial site sponsors, study investigators, and study monitors with various tools to conduct the Phase I clinic operation; and IRTMaster, which offers interactive response technology in support of the randomization process in clinical trials. The company also provides eClinical Suite that comprises a set of tools for collecting and managing clinical data, including EDC for real-time entry and double data entry (DDE) for entry from paper originals; and Promasys, a clinical trial data management system for DDE and EDC, which is primarily used at research institutions for investigator-initiated trials. In addition, it offers Acuity, a clinical data aggregation and analytics platform that provides actionable insights into quality, risk, and performance of various aspects of clinical trials in real time. Further, the company provides consulting and professional services, such as project management, clinical services, training, custom configuration, system integration, standard operating procedures and implementation assistance, installation, and validation services, as well as application hosting and related support services. It sells its products through a direct sales force and relationships with CRO partners, as well as through co-marketing agreements with vendor and channel partners. OmniComm Systems, Inc. was founded in 1996 and is headquartered in Fort Lauderdale, Florida.