CompoSecure (NASDAQ:CMPO) versus NU (NYSE:NU) Head-To-Head Analysis

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

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.

Institutional & Insider Ownership

37.6% of CompoSecure shares are owned by institutional investors. Comparatively, 84.0% of NU shares are owned by institutional investors. 75.0% of CompoSecure shares are owned by insiders. Comparatively, 1.2% of NU shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

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%

Earnings & Valuation

This table compares CompoSecure and NU”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CompoSecure	$420.57 million	2.42	$19.24 million	($1.14)	-8.71
NU	$8.27 billion	5.52	$1.03 billion	$0.40	23.93

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

This is a breakdown of recent recommendations and price targets for CompoSecure and NU, as provided by MarketBeat.

	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 target price of $16.19, indicating a potential upside of 63.02%. NU has a consensus target price of $15.47, indicating a potential upside of 61.62%. Given CompoSecure’s stronger consensus rating and higher possible upside, equities research analysts clearly believe CompoSecure is more favorable than NU.

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.