CompoSecure (NASDAQ:CMPO – Get Free Report) and Stronghold Digital Mining (NASDAQ:SDIG – Get Free Report) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.
Profitability
This table compares CompoSecure and Stronghold Digital Mining’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CompoSecure | -5.63% | -14.87% | 36.45% |
| Stronghold Digital Mining | -11.21% | 13.67% | 3.59% |
Analyst Ratings
This is a summary of current recommendations and price targets for CompoSecure and Stronghold Digital Mining, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CompoSecure | 0 | 1 | 6 | 0 | 2.86 |
| Stronghold Digital Mining | 0 | 1 | 1 | 1 | 3.00 |
Insider and Institutional Ownership
37.6% of CompoSecure shares are owned by institutional investors. Comparatively, 19.3% of Stronghold Digital Mining shares are owned by institutional investors. 75.0% of CompoSecure shares are owned by insiders. Comparatively, 21.1% of Stronghold Digital Mining shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares CompoSecure and Stronghold Digital Mining”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CompoSecure | $390.63 million | 3.61 | $19.24 million | ($0.44) | -36.34 |
| Stronghold Digital Mining | $74.97 million | 1.20 | -$71.40 million | ($3.70) | -1.41 |
CompoSecure has higher revenue and earnings than Stronghold Digital Mining. CompoSecure is trading at a lower price-to-earnings ratio than Stronghold Digital Mining, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
CompoSecure has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Stronghold Digital Mining has a beta of 2.92, indicating that its share price is 192% more volatile than the S&P 500.
Summary
CompoSecure beats Stronghold Digital Mining on 9 of the 15 factors compared between the two stocks.
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 Stronghold Digital Mining
Stronghold Digital Mining, Inc., a crypto asset mining company, focuses on Bitcoin mining in the United States. It operates in two segments, Energy Operations and Cryptocurrency Operations. It also owns and operates coal refuse power generation facilities; and provides environmental remediation and reclamation services. The company was incorporated in 2021 and is headquartered in New York, New York.
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