Usio (NASDAQ:USIO) & CompoSecure (NASDAQ:CMPO) Head-To-Head Analysis

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

Valuation & Earnings

This table compares CompoSecure and Usio”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CompoSecure	$267.82 million	9.63	-$53.72 million	($2.16)	-9.54
Usio	$83.85 million	0.46	$3.31 million	$0.10	14.60

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

Risk and Volatility

CompoSecure has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Usio has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.

Institutional & Insider Ownership

37.6% of CompoSecure shares are held by institutional investors. Comparatively, 20.2% of Usio shares are held by institutional investors. 52.1% of CompoSecure shares are held by company insiders. Comparatively, 17.8% of Usio shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CompoSecure	-24.53%	-65.50%	26.83%
Usio	3.43%	-1.63%	-0.28%

Analyst Ratings

This is a breakdown of current recommendations for CompoSecure and Usio, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CompoSecure	1	0	6	0	2.71
Usio	2	0	1	0	1.67

CompoSecure currently has a consensus target price of $24.50, indicating a potential upside of 18.96%. Usio has a consensus target price of $4.00, indicating a potential upside of 173.97%. Given Usio’s higher probable upside, analysts clearly believe Usio is more favorable than CompoSecure.

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.

About Usio

Usio, Inc., together with its subsidiaries, provides integrated electronic payment processing services to merchants and businesses in the United States. The company offers various types of automated clearing house (ACH) processing; and credit, prepaid card, and debit card-based processing services. Its ACH transaction processing services include Represented Check and Check Conversion for electronic payment facilitation. In addition, the company offers merchant account services for the processing of card-based transactions through the VISA, MasterCard, American Express, Discover, and JCB networks, including online terminal services accessed through a website or retail services accessed through a physical terminal. Further, it provides a proprietary web-based customer service application that allows companies to process one-time and recurring payments through e-checks or credit cards; and an interactive voice response telephone system to companies, which accept payments directly from consumers over the telephone using e-checks or credit cards. Additionally, the company offers prepaid and incentive card issuance services; and operates a prepaid core processing platform, as well as provides additional services, such as electronic bill presentment, document composition, document decomposition, and printing and mailing services for various industry verticals, including utilities and financial institutions. It markets and sells ACH products and services primarily through resellers; and prepaid card program directly to government entities, corporations, and to consumers through the internet. The company was formerly known as Payment Data Systems, Inc. and changed its name to Usio, Inc. in June 2019. Usio, Inc. was incorporated in 1998 and is headquartered in San Antonio, Texas.