Reviewing Mercurity Fintech (NASDAQ:MFH) and CompoSecure (NASDAQ:CMPO)

Mercurity Fintech (NASDAQ:MFH) and CompoSecure (NASDAQ:CMPO) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.

Profitability

This table compares Mercurity Fintech and CompoSecure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mercurity Fintech	N/A	N/A	N/A
CompoSecure	-24.53%	-65.50%	26.83%

Risk and Volatility

Mercurity Fintech has a beta of 3.89, indicating that its stock price is 289% more volatile than the S&P 500. Comparatively, CompoSecure has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.

Earnings & Valuation

This table compares Mercurity Fintech and CompoSecure”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mercurity Fintech	$1.01 million	911.04	-$4.53 million	N/A	N/A
CompoSecure	$420.57 million	4.96	-$53.72 million	($1.68)	-12.12

Mercurity Fintech has higher earnings, but lower revenue than CompoSecure.

Analyst Recommendations

This is a summary of recent recommendations for Mercurity Fintech and CompoSecure, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mercurity Fintech	0	0	0	0	0.00
CompoSecure	1	0	5	0	2.67

CompoSecure has a consensus target price of $17.67, suggesting a potential downside of 13.21%. Given CompoSecure’s stronger consensus rating and higher possible upside, analysts plainly believe CompoSecure is more favorable than Mercurity Fintech.

Institutional and Insider Ownership

30.8% of Mercurity Fintech shares are owned by institutional investors. Comparatively, 37.6% of CompoSecure shares are owned by institutional investors. 62.8% of Mercurity Fintech shares are owned by company insiders. Comparatively, 52.1% of CompoSecure shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

About Mercurity Fintech

Mercurity Fintech Holding Inc. operates as a fintech company powered by blockchain. The company provides digital asset trading infrastructure solutions based on internet and blockchain technologies for cryptocurrency traders; and asset digitalization platform, which offers blockchain-based digitalization solutions for traditional assets, such as fiat currencies, bonds, and precious metals. It also offers cryptocurrency mining services that provides computing power to the mining pool; and digital consultation services, such as digital payment solutions, asset management, and online and traditional brokerage services. The company was formerly known as JMU Limited and changed its name to Mercurity Fintech Holding Inc. in April 2020. Mercurity Fintech Holding Inc. was incorporated in 2011 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.