CompoSecure (NASDAQ:CMPO – Get Free Report) and Paysign (NASDAQ:PAYS – Get Free Report) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.
Institutional & Insider Ownership
37.6% of CompoSecure shares are owned by institutional investors. Comparatively, 25.9% of Paysign shares are owned by institutional investors. 52.1% of CompoSecure shares are owned by insiders. Comparatively, 22.4% of Paysign shares are owned 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.
Analyst Recommendations
This is a summary of recent recommendations for CompoSecure and Paysign, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CompoSecure | 1 | 0 | 5 | 0 | 2.67 |
| Paysign | 0 | 1 | 4 | 0 | 2.80 |
Valuation and Earnings
This table compares CompoSecure and Paysign”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CompoSecure | $267.82 million | 7.88 | -$53.72 million | ($1.68) | -12.27 |
| Paysign | $58.38 million | 5.54 | $3.82 million | $0.12 | 49.50 |
Paysign has lower revenue, but higher earnings than CompoSecure. CompoSecure is trading at a lower price-to-earnings ratio than Paysign, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
CompoSecure has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Paysign has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.
Profitability
This table compares CompoSecure and Paysign’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% |
| Paysign | 9.90% | 19.32% | 3.64% |
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 Paysign
Paysign, Inc. provides prepaid card programs, comprehensive patient affordability offerings, digital banking services, and integrated payment processing services for businesses, consumers, and government institutions. Its product offerings include solutions for corporate rewards, prepaid gift cards, general purpose reloadable debit cards, employee incentives, consumer rebates, donor compensation, clinical trials, healthcare reimbursement payments and pharmaceutical payment assistance, and demand deposit accounts accessible with a debit card. The company markets its prepaid card solutions under the Paysign brand. Its primary market focus is on companies and municipalities that require a streamlined payment solution for rewards, rebates, payment assistance, and other payments to their customers, employees, agents, and others. The company was formerly known as 3PEA International, Inc. and changed its name to Paysign, Inc. in April 2019. Paysign, Inc. was incorporated in 1995 and is headquartered in Henderson, Nevada.
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