Analyzing CompoSecure (CMPO) & Its Competitors

CompoSecure (NASDAQ:CMPO) is one of 436 publicly-traded companies in the “Machinery” industry, but how does it weigh in compared to its competitors? We will compare CompoSecure to similar businesses based on the strength of its valuation, risk, earnings, profitability, dividends, institutional ownership and analyst recommendations.

Risk and Volatility

CompoSecure has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, CompoSecure’s competitors have a beta of 2.18, suggesting that their average share price is 118% more volatile than the S&P 500.

Valuation & Earnings

This table compares CompoSecure and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
CompoSecure	$160.68 million	-$53.72 million	-4.95
CompoSecure Competitors	$3.53 billion	$150.45 million	3.55

CompoSecure’s competitors have higher revenue and earnings than CompoSecure. CompoSecure is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares CompoSecure and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CompoSecure	-24.53%	-65.50%	26.83%
CompoSecure Competitors	-2,801.46%	-32.80%	-2.37%

Analyst Recommendations

This is a breakdown of current ratings and price targets for CompoSecure and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CompoSecure	0	0	5	0	3.00
CompoSecure Competitors	4179	14644	18124	798	2.41

CompoSecure presently has a consensus target price of $26.00, suggesting a potential upside of 143.22%. As a group, “Machinery” companies have a potential upside of 31.73%. Given CompoSecure’s stronger consensus rating and higher possible upside, equities research analysts clearly believe CompoSecure is more favorable than its competitors.

Insider & Institutional Ownership

37.6% of CompoSecure shares are owned by institutional investors. Comparatively, 51.7% of shares of all “Machinery” companies are owned by institutional investors. 52.1% of CompoSecure shares are owned by insiders. Comparatively, 14.3% of shares of all “Machinery” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

CompoSecure competitors beat CompoSecure on 7 of the 13 factors compared.

CompoSecure Company Profile

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.