CompoSecure (NASDAQ:CMPO – Get Rating) and Synchrony Financial (NYSE:SYF – Get Rating) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.
Profitability
This table compares CompoSecure and Synchrony Financial's net margins, return on equity and return on assets.
Get CompoSecure alerts:| Net Margins | Return on Equity | Return on Assets | |
| CompoSecure | 10.97% | -3.01% | 19.54% |
| Synchrony Financial | 17.51% | 24.07% | 3.03% |
Risk and Volatility
CompoSecure has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Synchrony Financial has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations for CompoSecure and Synchrony Financial, as provided by MarketBeat.com.| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CompoSecure | 0 | 0 | 3 | 0 | 3.00 |
| Synchrony Financial | 2 | 5 | 6 | 0 | 2.31 |
CompoSecure presently has a consensus price target of $13.00, indicating a potential upside of 102.18%. Synchrony Financial has a consensus price target of $39.27, indicating a potential upside of 5.95%. Given CompoSecure's stronger consensus rating and higher possible upside, analysts clearly believe CompoSecure is more favorable than Synchrony Financial.
Earnings & Valuation
This table compares CompoSecure and Synchrony Financial's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CompoSecure | $267.95 million | 1.83 | $13.51 million | $2.21 | 2.91 |
| Synchrony Financial | $17.53 billion | 0.95 | $4.22 billion | $6.10 | 6.08 |
Synchrony Financial has higher revenue and earnings than CompoSecure. CompoSecure is trading at a lower price-to-earnings ratio than Synchrony Financial, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
31.8% of CompoSecure shares are held by institutional investors. Comparatively, 96.0% of Synchrony Financial shares are held by institutional investors. 23.9% of CompoSecure shares are held by insiders. Comparatively, 0.6% of Synchrony Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Synchrony Financial beats CompoSecure on 9 of the 14 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 Synchrony Financial
(Get Rating)
Synchrony Financial engages in the provision of consumer financial services. It operates through three sales platforms: Retail Card, Payment Solutions, and CareCredit. The Retail Card platform is a provider of private label credit cards, and also provides Dual Cards and small-and medium-sized business credit products. The Payment Solutions platform is a provider of promotional financing for major consumer purchases, offering private label credit cards and installment loans. The CareCredit platform is a provider of promotional financing to consumers for elective healthcare procedures or services, such as dental, veterinary, cosmetic, vision and audiology. The company was founded on September 12, 2003, and is headquartered in Stamford, CT.
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