Payoneer Global (NASDAQ:PAYO) and CompoSecure (NASDAQ:CMPO) Financial Analysis

CompoSecure (NASDAQ:CMPO) and Payoneer Global (NASDAQ:PAYO) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Profitability

This table compares CompoSecure and Payoneer Global’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%
Payoneer Global	6.95%	10.89%	0.99%

Risk and Volatility

CompoSecure has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Payoneer Global has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for CompoSecure and Payoneer Global, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CompoSecure	0	0	6	0	3.00
Payoneer Global	0	1	7	0	2.88

CompoSecure currently has a consensus target price of $25.50, indicating a potential upside of 49.12%. Payoneer Global has a consensus target price of $7.57, indicating a potential upside of 53.89%. Given Payoneer Global’s higher probable upside, analysts clearly believe Payoneer Global is more favorable than CompoSecure.

Earnings & Valuation

This table compares CompoSecure and Payoneer Global”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CompoSecure	$160.68 million	13.45	-$53.72 million	($2.16)	-7.92
Payoneer Global	$1.05 billion	1.61	$73.19 million	$0.19	25.89

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

Insider and Institutional Ownership

37.6% of CompoSecure shares are owned by institutional investors. Comparatively, 82.2% of Payoneer Global shares are owned by institutional investors. 52.1% of CompoSecure shares are owned by insiders. Comparatively, 2.6% of Payoneer Global shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Payoneer Global beats CompoSecure on 10 of the 14 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 Payoneer Global

Payoneer Global Inc. operates as a financial technology company. It operates a payment infrastructure platform that provides customers with a one-stop, global, multi-currency account to serve their accounts receivable and accounts payable needs. The company delivers a suite of services that includes cross-border payments, physical and virtual MasterCard cards, working capital, risk management, and other services. It also offers various payment options with minimal integration required, full back-office functions, and customer support offered. The company's platform delivers bank-grade security, stability, and redundancy. It serves customers, such as small and medium-sized businesses in approximately 190 countries and territories worldwide. Payoneer Global Inc. was founded in 2005 and is headquartered in New York, New York.