NU (NYSE:NU – Get Free Report) and CompoSecure (NASDAQ:CMPO – Get Free Report) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, dividends and analyst recommendations.
Valuation & Earnings
This table compares NU and CompoSecure”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NU | $8.27 billion | 6.24 | $1.03 billion | $0.40 | 27.08 |
| CompoSecure | $420.57 million | 2.30 | $19.24 million | ($1.14) | -9.62 |
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.
Analyst Recommendations
| 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 currently has a consensus price target of $15.47, indicating a potential upside of 42.77%. CompoSecure has a consensus price target of $16.19, indicating a potential upside of 47.56%. Given CompoSecure’s stronger consensus rating and higher possible upside, analysts plainly believe CompoSecure is more favorable than NU.
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 endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares NU and CompoSecure’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NU | 17.12% | 30.99% | 4.82% |
| CompoSecure | -5.63% | -14.87% | 36.45% |
Volatility & Risk
NU has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, CompoSecure has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.
Summary
NU beats CompoSecure on 9 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.
Receive News & Ratings for NU Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NU and related companies with MarketBeat.com's FREE daily email newsletter.
