CompoSecure (NASDAQ:CMPO – Get Free Report) and Marqeta (NASDAQ:MQ – Get Free Report) are both small-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.
Profitability
This table compares CompoSecure and Marqeta’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CompoSecure | -24.53% | -65.50% | 26.83% |
| Marqeta | 0.33% | 0.27% | 0.15% |
Analyst Recommendations
This is a summary of recent recommendations for CompoSecure and Marqeta, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CompoSecure | 0 | 0 | 6 | 0 | 3.00 |
| Marqeta | 2 | 8 | 1 | 0 | 1.91 |
Insider and Institutional Ownership
37.6% of CompoSecure shares are owned by institutional investors. Comparatively, 78.6% of Marqeta shares are owned by institutional investors. 52.1% of CompoSecure shares are owned by company insiders. Comparatively, 12.6% of Marqeta shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares CompoSecure and Marqeta”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CompoSecure | $160.68 million | 9.65 | -$53.72 million | ($2.16) | -5.68 |
| Marqeta | $624.88 million | 2.73 | -$13.93 million | $0.01 | 402.50 |
Marqeta has higher revenue and earnings than CompoSecure. CompoSecure is trading at a lower price-to-earnings ratio than Marqeta, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
CompoSecure has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, Marqeta has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.
Summary
Marqeta 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 Marqeta
Marqeta, Inc. operates a cloud-based open application programming interface platform that delivers card issuing and transaction processing services. It offers its solutions in various verticals, including financial services, on-demand services, expense management, and e-commerce enablement, as well as buy now, pay later. Marqeta, Inc. was incorporated in 2010 and is headquartered in Oakland, California.
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