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Analyzing CompoSecure (NASDAQ:CMPO) and Elevate Credit (NYSE:ELVT)

Defense World ·  Oct 4, 2022 01:21

CompoSecure (NASDAQ:CMPO – Get Rating) and Elevate Credit (NYSE:ELVT – Get Rating) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.

Valuation and Earnings

This table compares CompoSecure and Elevate Credit's revenue, earnings per share (EPS) and valuation.

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Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CompoSecure $267.95 million 1.42 $13.51 million N/A N/A
Elevate Credit $416.64 million 0.09 -$33.60 million ($1.97) -0.59

CompoSecure has higher earnings, but lower revenue than Elevate Credit.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for CompoSecure and Elevate Credit, as reported by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CompoSecure 0 0 2 0 3.00
Elevate Credit 0 0 1 0 3.00

CompoSecure presently has a consensus target price of $16.50, indicating a potential upside of 230.66%. Elevate Credit has a consensus target price of $3.50, indicating a potential upside of 201.72%. Given CompoSecure's higher probable upside, equities analysts plainly believe CompoSecure is more favorable than Elevate Credit.

Profitability

This table compares CompoSecure and Elevate Credit's net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CompoSecure N/A -1.28% 5.75%
Elevate Credit -13.16% -27.89% -5.97%

Insider and Institutional Ownership

14.0% of CompoSecure shares are held by institutional investors. Comparatively, 37.4% of Elevate Credit shares are held by institutional investors. 23.9% of CompoSecure shares are held by insiders. Comparatively, 10.0% of Elevate Credit shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

CompoSecure has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Elevate Credit has a beta of 2.01, suggesting that its share price is 101% more volatile than the S&P 500.

Summary

CompoSecure beats Elevate Credit on 8 of the 11 factors compared between the two stocks.

About CompoSecure

(Get Rating)

CompoSecure, Inc. manufactures and designs metal, plastic, composite ID, 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 comprise the Arculus Key card Cold Storage hardware device and companion Arculus Wallet mobile App to keep the Private Key in the Arculus Key card highly secure and store cryptocurrency and digital assets. It serves financial institutions, plastic card manufacturers, government agencies, system integrators, and security specialists. The company was founded in 1910 and is based in Somerset, New Jersey.

About Elevate Credit

(Get Rating)

Elevate Credit, Inc. provides online credit solutions to non-prime consumers in the United States. The company offers unsecured online installment loans, lines of credit, and credit cards. Its products include Rise, an installment loan product; Elastic, a line of credit product; and Today Card, a credit card product. Elevate Credit, Inc. was incorporated in 2014 and is headquartered in Fort Worth, Texas.

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Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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