Analyzing CompoSecure (NASDAQ:CMPO) & SAIHEAT (NASDAQ:SAIH)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CompoSecure	$390.63 million	3.53	$19.24 million	($0.44)	-35.55
SAIHEAT	$6.95 million	1.68	-$6.12 million	N/A	N/A

CompoSecure has higher revenue and earnings than SAIHEAT.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CompoSecure	-5.63%	-14.87%	36.45%
SAIHEAT	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations and price targets for CompoSecure and SAIHEAT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CompoSecure	0	1	7	0	2.88
SAIHEAT	0	0	0	0	0.00

CompoSecure presently has a consensus target price of $16.81, suggesting a potential upside of 7.50%. Given CompoSecure’s stronger consensus rating and higher possible upside, equities research analysts clearly believe CompoSecure is more favorable than SAIHEAT.

Insider and Institutional Ownership

37.6% of CompoSecure shares are owned by institutional investors. Comparatively, 0.2% of SAIHEAT shares are owned by institutional investors. 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 stock will outperform the market over the long term.

Risk & Volatility

CompoSecure has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, SAIHEAT has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500.

Summary

CompoSecure beats SAIHEAT on 9 of the 12 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 SAIHEAT

SAIHEAT Limited engages in the development of liquid-cooling data centers. It develops technologies for the advanced computing center ecosystem, a center that provides high-performance servers, liquid cooling, and systems for capturing and recycling computing heat. The company was formerly known as SAI.TECH Global Corporation and changed its name to SAIHEAT Limited in August 2024. SAIHEAT Limited was founded in 2019 and is headquartered in Singapore.