Analyzing Paypoint (OTCMKTS:PYPTF) and CompoSecure (NASDAQ:CMPO)

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

Valuation and Earnings

This table compares Paypoint and CompoSecure”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paypoint	$451.69 million	1.10	$52.72 million	N/A	N/A
CompoSecure	$160.68 million	11.46	-$53.72 million	($2.16)	-6.75

Paypoint has higher revenue and earnings than CompoSecure.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Paypoint	N/A	N/A	N/A
CompoSecure	-24.53%	-65.50%	26.83%

Analyst Ratings

This is a summary of current recommendations for Paypoint and CompoSecure, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paypoint	0	0	0	0	0.00
CompoSecure	0	0	6	0	3.00

CompoSecure has a consensus target price of $25.50, suggesting a potential upside of 75.02%. Given CompoSecure’s stronger consensus rating and higher possible upside, analysts clearly believe CompoSecure is more favorable than Paypoint.

Institutional and Insider Ownership

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, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Paypoint has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, CompoSecure has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Summary

CompoSecure beats Paypoint on 8 of the 12 factors compared between the two stocks.

About Paypoint

PayPoint plc engages in the provision of payments and banking, shopping, and e-commerce services and products in the United Kingdom. The company operates through two segments: PayPoint and Love2shop. The PayPoint segment provides card payment services to retailers, including leased payment devices; EPoS; ATM cash machines; SIM cards sales; receipt advertising; bill payment services and cash top-ups to individual consumers; parcel delivery and collection services; retailer service fees solutions; and digital payment services, as well as cash through to digital services. The segment offers its products under PayPoint One, eMoney, MultiPay, CashOut, and Direct Debits platforms. The Love2shop segment is involved in the provision of shopping vouchers, cards, and e-codes which customers may redeem with participating retailers; and Christmas savings club, to which customers make regular payments throughout the year to help spread the cost of Christmas, before converting to a voucher. It serves consumers, SMEs, and convenience retailers in the commercial, not-for-profit, and public sectors. The company was founded in 1996 and is headquartered in Welwyn Garden City, the United Kingdom.

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.