Sunlight Financial (NYSE:SUNL – Get Rating) and CompoSecure (NASDAQ:CMPO – Get Rating) are both small-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.
Analyst Ratings
This is a breakdown of recent ratings for Sunlight Financial and CompoSecure, as provided by MarketBeat.
Get Sunlight Financial alerts:| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sunlight Financial | 1 | 2 | 3 | 0 | 2.33 |
| CompoSecure | 0 | 0 | 3 | 0 | 3.00 |
Sunlight Financial presently has a consensus price target of $3.06, suggesting a potential upside of 138.93%. CompoSecure has a consensus price target of $13.00, suggesting a potential upside of 116.67%. Given Sunlight Financial's higher probable upside, equities analysts clearly believe Sunlight Financial is more favorable than CompoSecure.
Valuation & Earnings
This table compares Sunlight Financial 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 | |
| Sunlight Financial | $114.74 million | 1.44 | -$153.43 million | ($4.40) | -0.29 |
| CompoSecure | $267.95 million | 1.71 | $13.51 million | $2.21 | 2.71 |
CompoSecure has higher revenue and earnings than Sunlight Financial. Sunlight Financial is trading at a lower price-to-earnings ratio than CompoSecure, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Sunlight Financial and CompoSecure's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sunlight Financial | -334.33% | -1.37% | -1.19% |
| CompoSecure | 10.97% | -3.01% | 19.54% |
Institutional & Insider Ownership
29.6% of Sunlight Financial shares are owned by institutional investors. Comparatively, 31.8% of CompoSecure shares are owned by institutional investors. 23.0% of Sunlight Financial shares are owned by company insiders. Comparatively, 23.9% of CompoSecure shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
Sunlight Financial has a beta of 2.83, meaning that its share price is 183% more volatile than the S&P 500. Comparatively, CompoSecure has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.
Summary
CompoSecure beats Sunlight Financial on 10 of the 13 factors compared between the two stocks.
About Sunlight Financial
(Get Rating)
Sunlight Financial Holdings Inc. operates a business-to-business-to-consumer technology-enabled point-of-sale financing platform in the United States. Its platform is used to provide secured and unsecured loans for homeowners originated by third-party lenders to purchase and install residential solar energy systems, and other home improvements. The company was founded in 2014 and is based in Charlotte, North Carolina.
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.
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