Analyzing CPI Card Group (PMTS) and Its Competitors

CPI Card Group (NASDAQ:PMTS) is one of 14 publicly-traded companies in the “Commercial printing” industry, but how does it contrast to its competitors? We will compare CPI Card Group to similar businesses based on the strength of its valuation, dividends, profitability, risk, analyst recommendations, institutional ownership and earnings.

Institutional & Insider Ownership

19.9% of CPI Card Group shares are held by institutional investors. Comparatively, 50.9% of shares of all “Commercial printing” companies are held by institutional investors. 5.2% of CPI Card Group shares are held by insiders. Comparatively, 14.2% of shares of all “Commercial printing” companies 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.

Profitability

This table compares CPI Card Group and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CPI Card Group	8.58%	-53.91%	13.93%
CPI Card Group Competitors	-45.37%	-20.01%	-8.10%

Valuation and Earnings

This table compares CPI Card Group and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
CPI Card Group	$475.74 million	$36.54 million	5.94
CPI Card Group Competitors	$1.96 billion	$5.03 million	44.99

CPI Card Group’s competitors have higher revenue, but lower earnings than CPI Card Group. CPI Card Group 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.

Volatility and Risk

CPI Card Group has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, CPI Card Group’s competitors have a beta of 1.85, suggesting that their average stock price is 85% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for CPI Card Group and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CPI Card Group	0	0	0	0	N/A
CPI Card Group Competitors	33	145	237	34	2.61

CPI Card Group presently has a consensus target price of $49.00, suggesting a potential upside of 133.67%. As a group, “Commercial printing” companies have a potential upside of 35.83%. Given CPI Card Group’s higher probable upside, equities research analysts plainly believe CPI Card Group is more favorable than its competitors.

Summary

CPI Card Group competitors beat CPI Card Group on 6 of the 10 factors compared.

CPI Card Group Company Profile

CPI Card Group Inc., together with its subsidiaries, engages in the design, production, data personalization, packaging, and fulfillment of financial payment cards. It operates through Debit and Credit, and Prepaid Debit segments. The Debit and Credit segment produces financial payment cards and provides integrated card services to card-issuing financial institutions. Its products include Europay, Mastercard, and Visa (EMV) and non-EMV financial payment cards, including contact and contactless cards, plastic and encased metal cards, and Second Wave payment cards, as well as private label credit cards. This segment also provides on-demand services and various integrated card services, including card personalization and fulfillment, and instant issuance services. The Prepaid Debit segment primarily offers integrated card services comprising tamper-evident security packaging services to prepaid debit card providers. It also produces financial payment cards issued on the networks of the payment card brands. It serves issuers of debit and credit cards, Prepaid Debit Card program managers, community banks, credit unions, and group service providers in the United States. The company was formerly known as CPI Holdings I, Inc. and changed its name to CPI Card Group Inc. in August 2015. CPI Card Group Inc. was incorporated in 2007 and is headquartered in Littleton, Colorado.