CompoSecure (NASDAQ:CMPO) versus Greenbrier Companies (NYSE:GBX) Head-To-Head Comparison

CompoSecure (NASDAQ:CMPO) and Greenbrier Companies (NYSE:GBX) are both small-cap industrials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Institutional & Insider Ownership

37.6% of CompoSecure shares are owned by institutional investors. Comparatively, 95.6% of Greenbrier Companies shares are owned by institutional investors. 52.1% of CompoSecure shares are owned by insiders. Comparatively, 1.7% of Greenbrier Companies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares CompoSecure and Greenbrier Companies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CompoSecure	$160.68 million	10.36	-$53.72 million	($2.16)	-6.10
Greenbrier Companies	$3.24 billion	0.37	$204.10 million	$3.37	11.52

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

Risk & Volatility

CompoSecure has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Greenbrier Companies has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for CompoSecure and Greenbrier Companies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CompoSecure	0	0	5	0	3.00
Greenbrier Companies	1	3	0	0	1.75

CompoSecure presently has a consensus target price of $26.00, indicating a potential upside of 97.42%. Greenbrier Companies has a consensus target price of $45.00, indicating a potential upside of 15.92%. Given CompoSecure’s stronger consensus rating and higher possible upside, equities research analysts plainly believe CompoSecure is more favorable than Greenbrier Companies.

Profitability

This table compares CompoSecure and Greenbrier Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CompoSecure	-24.53%	-65.50%	26.83%
Greenbrier Companies	4.07%	6.49%	2.55%

Summary

Greenbrier Companies beats CompoSecure on 8 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 Greenbrier Companies

The Greenbrier Companies, Inc. designs, manufactures, and markets railroad freight car equipment in North America, Europe, and South America. It operates through three segments: Manufacturing; Maintenance Services; and Leasing & Management Services. The Manufacturing segment offers covered hopper cars, gondolas, open top hoppers, boxcars, center partition cars, tank cars, sustainable conversions, double-stack railcars, auto-max ii, multi-max, and multi-max plus products, intermodal cars, automobile transport, coil steel and metals, flat cars, sliding wall cars, pressurized tank cars, and non-pressurized tank cars. The Maintenance Services segment provides wheel services, including reconditioning of wheels and axles, new axle machining and finishing, and downsizing; operates a railcar repair, refurbishment, and maintenance network; and reconditions and manufactures railcar cushioning units, couplers, yokes, side frames, bolsters, and various other parts. The Leasing & Management Services segment offers operating leases and per diem leases for a fleet of approximately 13,400 railcars; and management services comprising railcar maintenance management, railcar accounting services, fleet management and logistics, administration, and railcar re-marketing. This segment provides management services for railroads, shippers, carriers, institutional investors, and other leasing and transportation companies. It serves railroads, leasing companies, financial institutions, shippers, carriers, and transportation companies. The company was founded in 1974 and is headquartered in Lake Oswego, Oregon.