Corpay (NYSE:CPAY) versus CompoSecure (NASDAQ:CMPO) Head-To-Head Comparison

Corpay (NYSE:CPAY) and CompoSecure (NASDAQ:CMPO) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Volatility and Risk

Corpay has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, CompoSecure has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Valuation and Earnings

This table compares Corpay and CompoSecure”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corpay	$3.97 billion	5.29	$1.00 billion	$14.73	20.40
CompoSecure	$160.68 million	14.72	-$53.72 million	($2.16)	-8.66

Corpay has higher revenue and earnings than CompoSecure. CompoSecure is trading at a lower price-to-earnings ratio than Corpay, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Corpay and CompoSecure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Corpay	24.37%	37.83%	7.26%
CompoSecure	-24.53%	-65.50%	26.83%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Corpay and CompoSecure, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corpay	0	5	9	0	2.64
CompoSecure	0	1	6	0	2.86

Corpay presently has a consensus price target of $375.43, suggesting a potential upside of 24.92%. CompoSecure has a consensus price target of $25.50, suggesting a potential upside of 36.28%. Given CompoSecure’s stronger consensus rating and higher probable upside, analysts plainly believe CompoSecure is more favorable than Corpay.

Institutional & Insider Ownership

98.8% of Corpay shares are held by institutional investors. Comparatively, 37.6% of CompoSecure shares are held by institutional investors. 5.0% of Corpay shares are held by company insiders. Comparatively, 52.1% of CompoSecure shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Corpay beats CompoSecure on 8 of the 14 factors compared between the two stocks.

About Corpay

Corpay, Inc. operates as a payments company that helps businesses and consumers manage vehicle-related expenses, lodging expenses, and corporate payments in the United States, Brazil, the United Kingdom, and internationally. The company offers vehicle payment solutions, which include fuel, tolls, parking, fleet maintenance, and long-haul transportation services, as well as prepaid food and transportation vouchers and cards. It also provides corporate payment solutions consisting of accounts payable automation; virtual cards, cross-border solutions; and purchasing and travel and entertainment card products, as well as lodging payments solutions for employees who travel overnight for work purposes; traveling crews and stranded passengers from airlines and cruise lines; and insurance policyholders displaced from their homes due to damage or catastrophe. In addition, the company offers gifts and payroll cards. It serves business, merchant, consumer, and payment network customers. The company was formerly known as FLEETCOR Technologies, Inc. and changed its name to Corpay, Inc. in March 2024. Corpay, Inc. was founded in 1986 and is headquartered in Atlanta, Georgia.

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.