CompoSecure (NASDAQ:CMPO – Get Free Report) and Paysafe (NYSE:PSFE – Get Free Report) are both small-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, valuation, dividends, profitability, earnings and institutional ownership.
Volatility & Risk
CompoSecure has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Paysafe has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500.
Earnings & Valuation
This table compares CompoSecure and Paysafe”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CompoSecure | $420.57 million | 4.60 | -$53.72 million | ($1.68) | -11.26 |
| Paysafe | $1.70 billion | 0.50 | $22.16 million | ($0.85) | -16.78 |
Paysafe has higher revenue and earnings than CompoSecure. Paysafe is trading at a lower price-to-earnings ratio than CompoSecure, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares CompoSecure and Paysafe’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CompoSecure | -24.53% | -65.50% | 26.83% |
| Paysafe | -2.93% | 9.64% | 1.71% |
Insider & Institutional Ownership
37.6% of CompoSecure shares are held by institutional investors. Comparatively, 54.4% of Paysafe shares are held by institutional investors. 52.1% of CompoSecure shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current recommendations and price targets for CompoSecure and Paysafe, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CompoSecure | 1 | 0 | 5 | 0 | 2.67 |
| Paysafe | 1 | 3 | 1 | 0 | 2.00 |
CompoSecure currently has a consensus target price of $17.67, indicating a potential downside of 6.58%. Paysafe has a consensus target price of $16.95, indicating a potential upside of 18.82%. Given Paysafe’s higher possible upside, analysts clearly believe Paysafe is more favorable than CompoSecure.
Summary
Paysafe beats CompoSecure on 8 of the 14 factors compared between the two stocks.
About CompoSecure
CompoSecure, Inc. manufactures and designs metal, composite, and proprietary financial transaction cards in the United States and internationally. Its primary metal form factors include embedded, metal veneer lite, metal veneer, and full metal products. The company also offers Arculus Cold Storage Wallet, a three-factor authentication solution, which supports specific digital assets, including Bitcoin, Ethereum, non-fungible tokens and others. In addition, it offers Payments + Arculus Secure Authenticate, white-labeled cold storage wallet, Payments + Arculus Cold Storage, and Payments + Arculus Authentication + Arculus Cold Storage. The company serves financial institutions, plastic card manufacturers, system integrators, and security specialists. CompoSecure, Inc. was founded in 1910 and is based in Somerset, New Jersey.
About Paysafe
Paysafe Limited provides end-to-end payment solutions in the United States, Germany, the United Kingdom, and internationally. Its payments platform offers a range of payment solutions comprising credit and debit card processing, digital wallet, eCash, and real-time banking solutions for entertainment verticals, such as iGaming, including online betting related to sports, e-sports, fantasy sports, poker, and other casino games, as well as travel, streaming/video gaming, retail/hospitality, and digital assets. The company operates through two segments, Merchant Solutions and Digital Wallets. The Merchant Solutions segment offers PCI-compliant payment acceptance and transaction processing solutions for merchants and integrated service providers, including merchant acquiring, transaction processing, gateway solutions, fraud and risk management tools, data and analytics, point of sale systems, and merchant financing solutions, as well as comprehensive support services under the Paysafe and Petroleum Card Services brands. The Digital Wallets segment offers digital wallet solutions under the Skrill, NETELLER, paysafecard, and Paysafecash brands; and pay-by-bank solutions under the Rapid Transfer brand. It also provides eCash solutions under the paysafecard and Paysafecash brands; paysafecard prepaid Mastercard that can be linked to a digital paysafecard account and used to make purchases; Safetypay, a platform that enables eCommerce transactions; and PagoEfectivo, an alternative payment platform. The company is based in London, the United Kingdom.
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