Fidelity National Information Services (NYSE:FIS) & CompoSecure (NASDAQ:CMPO) Head to Head Analysis

Fidelity National Information Services (NYSE:FIS) and CompoSecure (NASDAQ:CMPO) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Institutional & Insider Ownership

96.2% of Fidelity National Information Services shares are held by institutional investors. Comparatively, 37.6% of CompoSecure shares are held by institutional investors. 0.2% of Fidelity National Information Services shares are held by insiders. Comparatively, 52.1% of CompoSecure shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Fidelity National Information Services and CompoSecure, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelity National Information Services	2	7	14	0	2.52
CompoSecure	0	0	6	0	3.00

Fidelity National Information Services presently has a consensus target price of $69.86, suggesting a potential upside of 51.06%. CompoSecure has a consensus target price of $25.50, suggesting a potential upside of 49.12%. Given Fidelity National Information Services’ higher probable upside, analysts clearly believe Fidelity National Information Services is more favorable than CompoSecure.

Volatility and Risk

Fidelity National Information Services has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, CompoSecure has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Earnings & Valuation

This table compares Fidelity National Information Services and CompoSecure”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelity National Information Services	$10.68 billion	2.23	$382.00 million	$0.73	63.35
CompoSecure	$160.68 million	13.45	-$53.72 million	($2.16)	-7.92

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

Profitability

This table compares Fidelity National Information Services and CompoSecure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fidelity National Information Services	3.58%	21.21%	9.11%
CompoSecure	-24.53%	-65.50%	26.83%

Summary

Fidelity National Information Services beats CompoSecure on 9 of the 14 factors compared between the two stocks.

About Fidelity National Information Services

Fidelity National Information Services, Inc. engages in the provision of financial services technology solutions for financial institutions, businesses, and developers worldwide. It operates through Banking Solutions, Capital Market Solutions, and Corporate and Other segments. The company provides core processing and ancillary applications; mobile and online banking; fraud, risk management, and compliance; card and retail payment; electronic funds transfer and network; wealth and retirement; and item processing and output solutions. It also offers trading and asset, lending, leveraged and syndicated loan markets, and treasury and risk solutions. The company was founded in 1968 and is headquartered in Jacksonville, Florida.

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.