How Will OfficeMax Incorporated (OMX) Compete With The Big Boys?

In contrast, Office Depot is projected to report just 2 cents per share, after posting a loss last year.  This company has had an even more alarming revenue and earnings decline than OfficeMax, and the shares show it, currently at $4.49 per share, down from $46.52 six years ago, however nicely off the low of $1.51 in mid-2012.

Staples is by far the biggest of the three office supply companies, with a market cap about three times the size of the other two combined.  They are also by far the most stable company, and a quick comparison of their revenues to OfficeMax’s tells that story.  Staples also has the most shareholder-friendly management of the three, and the best balance sheet, with almost as much cash as debt.  They also trade at only 9.7 times current year earnings, a nice discount to the other two.

Conclusion

OfficeMax is a company that definitely serves a useful purpose, and their shopping experience is better than that of any of the big-box retailers, and quicker than the online giants.  Once the economy recovers to the point where businesses and the government are willing to pay for the convenience, OfficeMax will work a whole lot better as a business model.

The article How Will This Retailer Compete With The Big Boys? originally appeared on Fool.com and is written by Matthew Frankel.

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