Financial Analysis: CPI Card Group (PMTS) & Blackhawk Network Holdings (HAWK)
CPI Card Group (NASDAQ: PMTS) and Blackhawk Network Holdings (NASDAQ:HAWK) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitabiliy, valuation, institutional ownership, analyst recommendations and earnings.
CPI Card Group pays an annual dividend of $0.18 per share and has a dividend yield of 13.3%. Blackhawk Network Holdings does not pay a dividend. CPI Card Group pays out -150.0% of its earnings in the form of a dividend.
This table compares CPI Card Group and Blackhawk Network Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CPI Card Group||-2.46%||-1.55%||0.56%|
|Blackhawk Network Holdings||-0.01%||5.49%||1.55%|
Institutional and Insider Ownership
22.3% of CPI Card Group shares are held by institutional investors. Comparatively, 99.9% of Blackhawk Network Holdings shares are held by institutional investors. 4.6% of CPI Card Group shares are held by insiders. Comparatively, 3.8% of Blackhawk Network Holdings shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares CPI Card Group and Blackhawk Network Holdings’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CPI Card Group||$270.44 million||0.28||$32.41 million||($0.12)||-11.25|
|Blackhawk Network Holdings||$2.01 billion||1.20||$144.84 million||($0.01)||-4,250.00|
Blackhawk Network Holdings has higher revenue and earnings than CPI Card Group. Blackhawk Network Holdings is trading at a lower price-to-earnings ratio than CPI Card Group, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
CPI Card Group has a beta of -0.13, indicating that its share price is 113% less volatile than the S&P 500. Comparatively, Blackhawk Network Holdings has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.
This is a breakdown of current ratings for CPI Card Group and Blackhawk Network Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CPI Card Group||2||4||1||0||1.86|
|Blackhawk Network Holdings||0||4||8||0||2.67|
CPI Card Group currently has a consensus target price of $4.90, suggesting a potential upside of 262.96%. Blackhawk Network Holdings has a consensus target price of $45.42, suggesting a potential upside of 6.86%. Given CPI Card Group’s higher probable upside, equities research analysts clearly believe CPI Card Group is more favorable than Blackhawk Network Holdings.
Blackhawk Network Holdings beats CPI Card Group on 11 of the 15 factors compared between the two stocks.
About CPI Card Group
CPI Card Group Inc., formerly CPI Holdings I, Inc., provides Financial Payment Card solutions in North America. The Company is engaged in the design, production, data personalization, packaging and fulfillment of Financial Payment Cards, which it defines as credit cards, debit cards and prepaid debit cards issued on the networks of the Payment Card Brands in the United States, Europe and Canada. It is also engaged in the design, production, data personalization, packaging and fulfillment of retail gift and loyalty cards. Its segments include U.S. Debit and Credit, which produces Financial Payment Cards and provides integrated card services to card-issuing banks in the United States; U.S. Prepaid Debit, which provides integrated card services to Prepaid Debit Card issuers in the United States; U.K. Limited, which produces retail cards for customers in the United Kingdom and continental Europe, and Other, which has operations in Ontario, Canada and Petersfield, United Kingdom.
About Blackhawk Network Holdings
Blackhawk Network Holdings, Inc. is a prepaid payment network. The Company operates through three segments: U.S. Retail, International, and Incentives & Rewards. The U.S. Retail segment is engaged in the sale of prepaid products to consumers at its retail distribution partners and online and the sale of telecom handsets to retail distribution partners for resale to consumers. Its Incentives & Rewards segment is engaged in the sale of prepaid products, software and services to its business clients. It distributes closed loop gift cards in categories, including digital media and e-commerce, dining, electronics, entertainment, fashion and travel. It distributes a range of prepaid wireless or cellular cards. It also provides reloads for reloadable prepaid products, including prepaid telecom accounts and general-purpose reloadable cards. Its incentives businesses provide software, consulting services, program management, reward processing and reward fulfillment to its business clients.
Receive News & Ratings for CPI Card Group Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CPI Card Group Inc. and related companies with MarketBeat.com's FREE daily email newsletter.