Head to Head Survey: Cipher Mining (NASDAQ:CIFR) vs. CompoSecure (NASDAQ:CMPO)

Cipher Mining (NASDAQ:CIFR) and CompoSecure (NASDAQ:CMPO) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cipher Mining	0	0	8	2	3.20
CompoSecure	0	1	6	0	2.86

Cipher Mining presently has a consensus target price of $7.72, indicating a potential upside of 24.70%. CompoSecure has a consensus target price of $16.36, indicating a potential upside of 2.75%. Given Cipher Mining’s stronger consensus rating and higher possible upside, equities analysts clearly believe Cipher Mining is more favorable than CompoSecure.

Volatility and Risk

Cipher Mining has a beta of 2.29, indicating that its stock price is 129% more volatile than the S&P 500. Comparatively, CompoSecure has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.

Insider and Institutional Ownership

12.3% of Cipher Mining shares are owned by institutional investors. Comparatively, 37.6% of CompoSecure shares are owned by institutional investors. 2.3% of Cipher 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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cipher Mining	$126.84 million	16.97	-$25.78 million	($0.13)	-47.61
CompoSecure	$390.63 million	3.59	$19.24 million	($0.44)	-36.18

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cipher Mining	-33.39%	-8.29%	-7.29%
CompoSecure	-5.63%	-14.87%	36.45%

Summary

Cipher Mining beats CompoSecure on 8 of the 15 factors compared between the two stocks.

About Cipher Mining

Cipher Mining Inc., together with its subsidiaries, engages in the development and operation of industrial scale bitcoin mining data centers in the United States. The company was incorporated in 2020 and is based in New York, New York. Cipher Mining Inc. operates as a subsidiary of Bitfury Holding B.V.

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.