Critical Analysis: CPI Card Group (NASDAQ:PMTS) vs. Foxx Development (NASDAQ:FOXX)

CPI Card Group (NASDAQ:PMTS) and Foxx Development (NASDAQ:FOXX) are both small-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Valuation & Earnings

This table compares CPI Card Group and Foxx Development”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CPI Card Group	$543.53 million	0.57	$14.95 million	$1.15	23.38
Foxx Development	$52.58 million	0.27	-$52.69 million	($7.53)	-0.27

CPI Card Group has higher revenue and earnings than Foxx Development. Foxx Development is trading at a lower price-to-earnings ratio than CPI Card Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for CPI Card Group and Foxx Development, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CPI Card Group	0	2	4	0	2.67
Foxx Development	1	0	0	0	1.00

CPI Card Group presently has a consensus price target of $30.25, indicating a potential upside of 12.50%. Given CPI Card Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe CPI Card Group is more favorable than Foxx Development.

Profitability

This table compares CPI Card Group and Foxx Development’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CPI Card Group	2.34%	-145.74%	6.29%
Foxx Development	-100.20%	N/A	-74.38%

Institutional and Insider Ownership

22.1% of CPI Card Group shares are held by institutional investors. Comparatively, 60.4% of Foxx Development shares are held by institutional investors. 5.8% of CPI Card Group shares are held by insiders. Comparatively, 31.6% of Foxx Development shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

CPI Card Group has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, Foxx Development has a beta of -0.34, indicating that its stock price is 134% less volatile than the S&P 500.

Summary

CPI Card Group beats Foxx Development on 11 of the 14 factors compared between the two stocks.

About CPI Card Group

CPI Card Group Inc., together with its subsidiaries, engages in the design, production, data personalization, packaging, and fulfillment of financial payment cards. It operates through Debit and Credit, and Prepaid Debit segments. The Debit and Credit segment produces financial payment cards and provides integrated card services to card-issuing financial institutions. Its products include Europay, Mastercard, and Visa (EMV) and non-EMV financial payment cards, including contact and contactless cards, plastic and encased metal cards, and Second Wave payment cards, as well as private label credit cards. This segment also provides on-demand services and various integrated card services, including card personalization and fulfillment, as well as instant issuance services. The Prepaid Debit segment primarily offers integrated card services comprising tamper-evident security packaging services to prepaid debit card providers. It also produces financial payment cards issued on the networks of the payment card brands. It serves issuers of debit and credit cards, Prepaid Debit Card program managers, community banks, credit unions, and group service providers in the United States. The company was formerly known as CPI Holdings I, Inc. and changed its name to CPI Card Group Inc. in August 2015. CPI Card Group Inc. was incorporated in 2007 and is headquartered in Littleton, Colorado.

About Foxx Development

Foxx Development Holdings Inc. is a consumer electronics and integrated Internet-of-Things solution company catering to both retail and institutional clients. The company currently sells a diverse range of products including mobile phones, tablets and other consumer electronics devices principally in United State and is in the process of developing and distributing end-to-end communication terminals and IoT solutions. Foxx Development Holdings Inc., formerly known as Acri Capital Acquisition Corporation, is based in Austin, TX.