Reviewing Stronghold Digital Mining (NASDAQ:SDIG) & CompoSecure (NASDAQ:CMPO)

Stronghold Digital Mining (NASDAQ:SDIG) and CompoSecure (NASDAQ:CMPO) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Valuation and Earnings

This table compares Stronghold Digital Mining 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
Stronghold Digital Mining	$79.53 million	1.09	-$71.40 million	($3.70)	-1.36
CompoSecure	$419.61 million	3.46	$19.24 million	($0.44)	-37.41

CompoSecure has higher revenue and earnings than Stronghold Digital Mining. CompoSecure is trading at a lower price-to-earnings ratio than Stronghold Digital Mining, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

19.3% of Stronghold Digital Mining shares are owned by institutional investors. Comparatively, 37.6% of CompoSecure shares are owned by institutional investors. 21.1% of Stronghold Digital Mining shares are owned by company insiders. Comparatively, 75.0% of CompoSecure shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Stronghold Digital Mining has a beta of 2.92, suggesting that its share price is 192% more volatile than the S&P 500. Comparatively, CompoSecure has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.

Profitability

This table compares Stronghold Digital Mining and CompoSecure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stronghold Digital Mining	-11.21%	13.67%	3.59%
CompoSecure	-5.63%	-14.87%	36.45%

Analyst Ratings

This is a summary of recent ratings and target prices for Stronghold Digital Mining and CompoSecure, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stronghold Digital Mining	0	1	1	1	3.00
CompoSecure	0	1	6	0	2.86

Stronghold Digital Mining currently has a consensus price target of $6.17, indicating a potential upside of 22.84%. CompoSecure has a consensus price target of $16.36, indicating a potential downside of 0.62%. Given Stronghold Digital Mining’s stronger consensus rating and higher possible upside, analysts plainly believe Stronghold Digital Mining is more favorable than CompoSecure.

Summary

CompoSecure beats Stronghold Digital Mining on 9 of the 15 factors compared between the two stocks.

About Stronghold Digital Mining

Stronghold Digital Mining, Inc., a crypto asset mining company, focuses on Bitcoin mining in the United States. It operates in two segments, Energy Operations and Cryptocurrency Operations. It also owns and operates coal refuse power generation facilities; and provides environmental remediation and reclamation services. The company was incorporated in 2021 and is headquartered in New York, New York.

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.