CompoSecure (NASDAQ:CMPO – Get Rating) and Pagaya Technologies (NASDAQ:PGY – Get Rating) are both small-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.
Institutional & Insider Ownership
31.8% of CompoSecure shares are owned by institutional investors. Comparatively, 22.6% of Pagaya Technologies shares are owned by institutional investors. 76.1% of CompoSecure shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares CompoSecure and Pagaya Technologies’ revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CompoSecure | $378.48 million | 1.46 | $18.66 million | $0.95 | 7.42 |
| Pagaya Technologies | $748.93 million | 1.16 | -$302.32 million | ($0.49) | -2.51 |
Risk & Volatility
CompoSecure has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Pagaya Technologies has a beta of 7.89, suggesting that its share price is 689% more volatile than the S&P 500.
Profitability
This table compares CompoSecure and Pagaya Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CompoSecure | 4.07% | -4.30% | 23.43% |
| Pagaya Technologies | -42.32% | -8.02% | -5.81% |
Analyst Recommendations
This is a summary of recent ratings for CompoSecure and Pagaya Technologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CompoSecure | 0 | 0 | 6 | 0 | 3.00 |
| Pagaya Technologies | 0 | 4 | 2 | 0 | 2.33 |
CompoSecure presently has a consensus target price of $12.40, indicating a potential upside of 75.89%. Pagaya Technologies has a consensus target price of $3.64, indicating a potential upside of 196.07%. Given Pagaya Technologies’ higher possible upside, analysts plainly believe Pagaya Technologies is more favorable than CompoSecure.
Summary
CompoSecure beats Pagaya Technologies on 11 of the 14 factors compared between the two stocks.
About CompoSecure
CompoSecure, Inc. manufactures and designs metal, plastic, 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 Authentication, white-labeled cold storage wallet, Payments + Arculus Cold Storage, and Payments + Arculus Secure Authentication + Arculus Cold Storage. The company serves financial institutions, plastic card manufacturers, government agencies, system integrators, and security specialists. CompoSecure, Inc. was founded in 1910 and is based in Somerset, New Jersey.
About Pagaya Technologies
Pagaya Technologies Ltd. operates as a financial technology company in Israel, the United States, and the Cayman Islands. It develops and implements proprietary artificial intelligence technology and related software solutions to assist partners to originate loans and other assets. Its partners include high-growth financial technology companies, incumbent financial institutions, auto finance providers, and brokers. The company was founded in 2016 and is headquartered in Tel Aviv, Israel.
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