Financial Comparison: Eshallgo (NASDAQ:EHGO) versus Deluxe (NYSE:DLX)

Eshallgo (NASDAQ:EHGO) and Deluxe (NYSE:DLX) are both small-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Eshallgo	N/A	N/A	N/A
Deluxe	2.64%	21.20%	4.91%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Eshallgo and Deluxe, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eshallgo	0	0	0	0	0.00
Deluxe	0	1	1	0	2.50

Deluxe has a consensus price target of $23.00, suggesting a potential upside of 37.48%. Given Deluxe’s stronger consensus rating and higher possible upside, analysts clearly believe Deluxe is more favorable than Eshallgo.

Institutional & Insider Ownership

93.9% of Deluxe shares are held by institutional investors. 5.6% of Deluxe shares are held 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.

Earnings & Valuation

This table compares Eshallgo and Deluxe”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eshallgo	$16.96 million	0.97	$10,000.00	N/A	N/A
Deluxe	$2.12 billion	0.35	$52.80 million	$1.25	13.38

Deluxe has higher revenue and earnings than Eshallgo.

Summary

Deluxe beats Eshallgo on 10 of the 11 factors compared between the two stocks.

About Eshallgo

Eshallgo Inc., through its subsidiaries, engages in the sale and leasing of office equipment and after-sale maintenance and repair services in the People’s Republic of China. The company also sells office furniture, IT products, water dispensers, printing papers, and other products, as well as provides maintenance services with enterprise resource planning systems. It serves private and public sector businesses, as well as large enterprises and institutions. The company was founded in 2015 and is based in Shanghai, China.

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.