CompoSecure (NASDAQ:CMPO – Get Free Report) and OppFi (NYSE:OPFI – Get Free Report) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.
Insider and Institutional Ownership
37.6% of CompoSecure shares are held by institutional investors. Comparatively, 7.1% of OppFi shares are held by institutional investors. 52.1% of CompoSecure shares are held by insiders. Comparatively, 72.0% of OppFi shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares CompoSecure and OppFi”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CompoSecure | $420.57 million | 4.81 | -$53.72 million | ($1.68) | -11.77 |
| OppFi | $525.96 million | 1.96 | $7.26 million | ($1.31) | -8.99 |
OppFi has higher revenue and earnings than CompoSecure. CompoSecure is trading at a lower price-to-earnings ratio than OppFi, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares CompoSecure and OppFi’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% |
| OppFi | -6.04% | 53.83% | 19.01% |
Analyst Ratings
This is a breakdown of current ratings and price targets for CompoSecure and OppFi, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CompoSecure | 1 | 0 | 5 | 0 | 2.67 |
| OppFi | 0 | 1 | 3 | 1 | 3.00 |
CompoSecure presently has a consensus target price of $17.67, suggesting a potential downside of 10.64%. OppFi has a consensus target price of $13.63, suggesting a potential upside of 15.66%. Given OppFi’s stronger consensus rating and higher possible upside, analysts plainly believe OppFi is more favorable than CompoSecure.
Risk & Volatility
CompoSecure has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, OppFi has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500.
Summary
OppFi beats CompoSecure on 11 of the 15 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 OppFi
OppFi Inc. operates a cialty finance platform that allows banks to offer credit access. Its platform facilitates the OppLoans, an installment loan product; SalaryTap, a payroll deduction secured installment loan product; and OppFi Card, a credit card product. OppFi Inc. was founded in 2012 and is headquartered in Chicago, Illinois.
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