Head to Head Review: CompoSecure (NASDAQ:CMPO) & Cipher Mining (NASDAQ:CIFR)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cipher Mining	-33.39%	-8.29%	-7.29%
CompoSecure	-5.63%	-14.87%	36.45%

Risk and Volatility

Cipher Mining has a beta of 2.18, indicating that its share price is 118% more volatile than the S&P 500. Comparatively, CompoSecure has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.

Insider and Institutional Ownership

12.3% of Cipher Mining shares are owned by institutional investors. Comparatively, 37.6% of CompoSecure shares are owned by institutional investors. 2.3% of Cipher Mining shares are owned by insiders. Comparatively, 75.0% of CompoSecure shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations for Cipher Mining and CompoSecure, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cipher Mining	0	0	8	2	3.20
CompoSecure	0	1	6	0	2.86

Cipher Mining presently has a consensus price target of $7.72, indicating a potential upside of 15.21%. CompoSecure has a consensus price target of $15.79, indicating a potential downside of 1.03%. Given Cipher Mining’s stronger consensus rating and higher probable upside, research analysts clearly believe Cipher Mining is more favorable than CompoSecure.

Valuation & Earnings

This table compares Cipher Mining and CompoSecure”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cipher Mining	$126.84 million	18.37	-$25.78 million	($0.13)	-51.53
CompoSecure	$390.63 million	3.60	$19.24 million	($0.44)	-36.25

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

Summary

Cipher Mining beats CompoSecure on 8 of the 15 factors compared between the two stocks.

About Cipher Mining

Cipher Mining Inc., together with its subsidiaries, engages in the development and operation of industrial scale bitcoin mining data centers in the United States. The company was incorporated in 2020 and is based in New York, New York. Cipher Mining Inc. operates as a subsidiary of Bitfury Holding B.V.

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.