Head to Head Analysis: PagSeguro Digital (NYSE:PAGS) & CompoSecure (NASDAQ:CMPO)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PagSeguro Digital	$3.22 billion	0.93	$392.38 million	$1.22	7.41
CompoSecure	$420.57 million	3.42	-$53.72 million	($1.10)	-12.77

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

Volatility and Risk

PagSeguro Digital has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500. Comparatively, CompoSecure has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for PagSeguro Digital and CompoSecure, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PagSeguro Digital	1	4	5	1	2.55
CompoSecure	0	1	7	0	2.88

PagSeguro Digital presently has a consensus target price of $11.63, suggesting a potential upside of 28.60%. CompoSecure has a consensus target price of $16.19, suggesting a potential upside of 15.21%. Given PagSeguro Digital’s higher probable upside, analysts plainly believe PagSeguro Digital is more favorable than CompoSecure.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PagSeguro Digital	11.15%	15.43%	3.27%
CompoSecure	-15.36%	-33.46%	29.35%

Institutional and Insider Ownership

45.9% of PagSeguro Digital shares are owned by institutional investors. Comparatively, 37.6% of CompoSecure shares are owned by institutional investors. 52.1% of CompoSecure shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

PagSeguro Digital beats CompoSecure on 10 of the 15 factors compared between the two stocks.

About PagSeguro Digital

PagSeguro Digital Ltd., together with its subsidiaries, provides financial technology solutions and services for consumers, individual entrepreneurs, micro-merchants, and small and medium-sized companies in Brazil and internationally. The company's products and services include PagSeguro Ecosystem, a digital ecosystem that operates as a closed loop where its clients are able to address their primary day to day financial needs, including receiving and spending funds, and managing and growing their businesses; PagBank digital account, which offers payment and banking services through the PagBank mobile app, as well as centralizes various cash-in options, functionalities, services, and cash-out options in a single ecosystem; and PlugPag, a tool for medium-sized and larger merchants that enables them to connect their point of sale (POS) device directly to their enterprise resource planning software or sales automation system through Bluetooth. It also offers cash-in solutions; online and in-person payment tools; and online gaming and cross-border digital services, as well as issues prepaid, credit, and cash cards. In addition, the company provides functionalities, and value-added services and features, such as purchase protection mechanisms, antifraud platform, account and business management tools, POS app, i-Banking App, Super App, and e-commerce support and bill payment services; and PedeFácil, an order management and food delivery app. Further, it is involved in processing of back-office solutions, including sales reconciliation, and gateway solutions and services, as well as the capture of credit cards with acquirers and sub acquirers. The company was founded in 2006 and is headquartered in São Paulo, Brazil.

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.