CompoSecure (NASDAQ:CMPO – Get Free Report) and NU (NYSE:NU – Get Free Report) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.
Valuation & Earnings
This table compares CompoSecure and NU”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CompoSecure | $420.57 million | 2.30 | $19.24 million | ($1.14) | -9.62 |
| NU | $8.27 billion | 6.24 | $1.03 billion | $0.40 | 27.08 |
NU has higher revenue and earnings than CompoSecure. CompoSecure is trading at a lower price-to-earnings ratio than NU, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CompoSecure | 0 | 1 | 7 | 0 | 2.88 |
| NU | 1 | 4 | 5 | 0 | 2.40 |
CompoSecure currently has a consensus price target of $16.19, indicating a potential upside of 47.56%. NU has a consensus price target of $15.47, indicating a potential upside of 42.77%. Given CompoSecure’s stronger consensus rating and higher possible upside, equities analysts plainly believe CompoSecure is more favorable than NU.
Insider & Institutional Ownership
37.6% of CompoSecure shares are held by institutional investors. Comparatively, 84.0% of NU shares are held by institutional investors. 75.0% of CompoSecure shares are held by insiders. Comparatively, 1.2% of NU shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares CompoSecure and NU’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% |
| NU | 17.12% | 30.99% | 4.82% |
Risk and Volatility
CompoSecure has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, NU has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.
Summary
NU beats CompoSecure on 9 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 NU
Nu Holdings Ltd. is a holding company, which engages in the provision of digital banking services. The company was founded by David Vélez Osorno, Cristina Helena Zingaretti Junqueira, and Adam Edward Wible on February 26, 2016 and is headquartered in George Town, Cayman Islands.
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