NU (NYSE:NU – Get Free Report) and CompoSecure (NASDAQ:CMPO – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.
Earnings & Valuation
This table compares NU and CompoSecure”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NU | $8.27 billion | 6.14 | $1.03 billion | $0.40 | 26.63 |
| CompoSecure | $419.61 million | 2.47 | $19.24 million | ($0.44) | -26.69 |
NU has higher revenue and earnings than CompoSecure. CompoSecure is trading at a lower price-to-earnings ratio than NU, indicating that it is currently the more affordable of the two stocks.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| NU | 17.12% | 30.99% | 4.82% |
| CompoSecure | -5.63% | -14.87% | 36.45% |
Risk & Volatility
NU has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, CompoSecure has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for NU and CompoSecure, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NU | 1 | 4 | 5 | 0 | 2.40 |
| CompoSecure | 0 | 1 | 7 | 0 | 2.88 |
NU presently has a consensus target price of $15.47, indicating a potential upside of 45.19%. CompoSecure has a consensus target price of $16.56, indicating a potential upside of 41.02%. Given NU’s higher probable upside, research analysts clearly believe NU is more favorable than CompoSecure.
Institutional & Insider Ownership
84.0% of NU shares are held by institutional investors. Comparatively, 37.6% of CompoSecure shares are held by institutional investors. 1.2% of NU shares are held by company insiders. Comparatively, 75.0% of CompoSecure shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
NU beats CompoSecure on 10 of the 14 factors compared between the two stocks.
About NU
Nu Holdings Ltd. is a holding company, which engages in the provision of digital banking services. The company was founded by David Vélez Osorno, Cristina Helena Zingaretti Junqueira, and Adam Edward Wible on February 26, 2016 and is headquartered in George Town, Cayman Islands.
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.
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