CPI Card Group (NASDAQ: PMTS) and Capital One Financial Corporation (NYSE:COF) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitabiliy.

Analyst Ratings

This is a summary of current recommendations and price targets for CPI Card Group and Capital One Financial Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CPI Card Group 2 4 1 0 1.86
Capital One Financial Corporation 2 10 10 1 2.43

CPI Card Group presently has a consensus target price of $4.90, suggesting a potential upside of 345.45%. Capital One Financial Corporation has a consensus target price of $93.26, suggesting a potential upside of 9.53%. Given CPI Card Group’s higher probable upside, equities analysts plainly believe CPI Card Group is more favorable than Capital One Financial Corporation.

Risk & Volatility

CPI Card Group has a beta of -0.13, indicating that its stock price is 113% less volatile than the S&P 500. Comparatively, Capital One Financial Corporation has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.

Profitability

This table compares CPI Card Group and Capital One Financial Corporation’s 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%
Capital One Financial Corporation 13.32% 7.92% 1.09%

Institutional & Insider Ownership

22.2% of CPI Card Group shares are owned by institutional investors. Comparatively, 87.7% of Capital One Financial Corporation shares are owned by institutional investors. 4.6% of CPI Card Group shares are owned by insiders. Comparatively, 1.7% of Capital One Financial Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

CPI Card Group pays an annual dividend of $0.18 per share and has a dividend yield of 16.4%. Capital One Financial Corporation pays an annual dividend of $1.60 per share and has a dividend yield of 1.9%. CPI Card Group pays out -150.0% of its earnings in the form of a dividend. Capital One Financial Corporation pays out 23.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. CPI Card Group has raised its dividend for 4 consecutive years. CPI Card Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares CPI Card Group and Capital One Financial Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CPI Card Group $270.44 million 0.23 $32.41 million ($0.12) -9.17
Capital One Financial Corporation $19.13 billion 2.15 $3.31 billion $6.83 12.47

Capital One Financial Corporation has higher revenue and earnings than CPI Card Group. CPI Card Group is trading at a lower price-to-earnings ratio than Capital One Financial Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

Capital One Financial Corporation beats CPI Card Group on 12 of the 18 factors compared between the two stocks.

CPI Card Group Company Profile

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.

Capital One Financial Corporation Company Profile

Capital One Financial Corporation is a diversified financial services holding company. The Company, along with its subsidiaries, offers a range of financial products and services to consumers, small businesses and commercial clients through branches, the Internet and other distribution channels. The Company’s segments include Credit Card, Consumer Banking, Commercial Banking and Other. The Credit Card segment consists of its domestic consumer and small business card lending, and the international card lending businesses in Canada and the United Kingdom. The Consumer Banking segment consists of its branch-based lending and deposit gathering activities for consumers and small businesses, national deposit gathering, national auto lending and consumer home loan lending and servicing activities. The Commercial Banking consists of its lending, deposit gathering and treasury management services to commercial real estate, and commercial and industrial customers.

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