Head-To-Head Survey: Touchpoint Group (OTCMKTS:TGHI) & CPI Card Group (NASDAQ:PMTS)

Touchpoint Group (OTCMKTS:TGHI) and CPI Card Group (NASDAQ:PMTS) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Valuation and Earnings

This table compares Touchpoint Group and CPI Card Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Touchpoint Group	N/A	N/A	N/A	N/A	N/A
CPI Card Group	$515.58 million	0.30	$19.52 million	$1.20	11.24

CPI Card Group has higher revenue and earnings than Touchpoint Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Touchpoint Group	N/A	N/A	N/A
CPI Card Group	2.66%	-58.00%	5.51%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Touchpoint Group and CPI Card Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Touchpoint Group	0	0	0	0	0.00
CPI Card Group	2	0	4	0	2.33

CPI Card Group has a consensus target price of $30.60, indicating a potential upside of 126.92%. Given CPI Card Group’s stronger consensus rating and higher possible upside, analysts plainly believe CPI Card Group is more favorable than Touchpoint Group.

Insider and Institutional Ownership

22.1% of CPI Card Group shares are owned by institutional investors. 28.5% of Touchpoint Group shares are owned by insiders. Comparatively, 2.8% of CPI Card Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Touchpoint Group has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500. Comparatively, CPI Card Group has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.

Summary

CPI Card Group beats Touchpoint Group on 8 of the 10 factors compared between the two stocks.

About Touchpoint Group

Touchpoint Group Holdings, Inc., through its subsidiaries, operates as a software development company in the United States, Hong Kong, China, and the United Kingdom. The company engages in the software development, design, integration, support, and maintenance services of a robust fan engagement platform that enhances fan experience and drives commercial aspects of the sport and entertainment business. Its fan engagement platform also brings users closer to the action by enabling them to engage with clubs, favorite players, peers, and relevant brands through various features, including live streaming, access to limited edition merchandise, gamification, user rewards, third party branded offers, credit cards, and related benefits. The company was formerly known as One Horizon Group, Inc. and changed its name to Touchpoint Group Holdings, Inc. in September 2019. Touchpoint Group Holdings, Inc. was incorporated in 1972 and is based in Miami, Florida.

About CPI Card Group

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, as well as 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.