CompoSecure (NASDAQ:CMPO – Get Free Report) and Stronghold Digital Mining (NASDAQ:SDIG – Get Free Report) are both small-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.
Earnings and Valuation
This table compares CompoSecure and Stronghold Digital Mining”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CompoSecure | $390.63 million | 3.61 | $19.24 million | ($0.44) | -36.34 |
| Stronghold Digital Mining | $74.97 million | 1.20 | -$71.40 million | ($3.70) | -1.41 |
CompoSecure has higher revenue and earnings than Stronghold Digital Mining. CompoSecure is trading at a lower price-to-earnings ratio than Stronghold Digital Mining, indicating that it is currently the more affordable of the two stocks.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| CompoSecure | -5.63% | -14.87% | 36.45% |
| Stronghold Digital Mining | -11.21% | 13.67% | 3.59% |
Volatility & Risk
CompoSecure has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Stronghold Digital Mining has a beta of 2.92, meaning that its stock price is 192% more volatile than the S&P 500.
Institutional & Insider Ownership
37.6% of CompoSecure shares are held by institutional investors. Comparatively, 19.3% of Stronghold Digital Mining shares are held by institutional investors. 75.0% of CompoSecure shares are held by insiders. Comparatively, 21.1% of Stronghold Digital Mining shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and target prices for CompoSecure and Stronghold Digital Mining, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CompoSecure | 0 | 1 | 6 | 0 | 2.86 |
| Stronghold Digital Mining | 0 | 1 | 1 | 1 | 3.00 |
CompoSecure currently has a consensus target price of $16.36, indicating a potential upside of 2.30%. Stronghold Digital Mining has a consensus target price of $6.17, indicating a potential upside of 17.91%. Given Stronghold Digital Mining’s stronger consensus rating and higher probable upside, analysts clearly believe Stronghold Digital Mining is more favorable than CompoSecure.
Summary
CompoSecure beats Stronghold Digital Mining on 9 of the 15 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 Stronghold Digital Mining
Stronghold Digital Mining, Inc., a crypto asset mining company, focuses on Bitcoin mining in the United States. It operates in two segments, Energy Operations and Cryptocurrency Operations. It also owns and operates coal refuse power generation facilities; and provides environmental remediation and reclamation services. The company was incorporated in 2021 and is headquartered in New York, New York.
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