Contrasting Core Scientific (NASDAQ:CORZ) and CompoSecure (NASDAQ:CMPO)

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

Profitability

This table compares CompoSecure and Core Scientific’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%
Core Scientific	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for CompoSecure and Core Scientific, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CompoSecure	0	1	6	0	2.86
Core Scientific	0	0	13	1	3.07

CompoSecure currently has a consensus target price of $15.79, indicating a potential downside of 1.59%. Core Scientific has a consensus target price of $18.38, indicating a potential upside of 0.85%. Given Core Scientific’s stronger consensus rating and higher probable upside, analysts clearly believe Core Scientific is more favorable than CompoSecure.

Institutional & Insider Ownership

37.6% of CompoSecure shares are owned by institutional investors. 75.0% of CompoSecure shares are owned by insiders. Comparatively, 32.0% of Core Scientific shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares CompoSecure and Core Scientific”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CompoSecure	$390.63 million	3.62	$19.24 million	($0.44)	-36.45
Core Scientific	$557.68 million	9.13	-$1.51 billion	($5.41)	-3.37

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

Summary

Core Scientific beats CompoSecure on 9 of the 14 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 Core Scientific

Core Scientific, Inc. provides digital asset mining services in North America. It operates through two segments, Mining and Hosting. The company offers blockchain infrastructure, software solutions, and services; and operates data center mining facilities. It also mines digital assets for its own account; and provides hosting services for other large bitcoin miners, which include deployment, monitoring, trouble shooting, optimization, and maintenance of its customers' digital asset mining equipment. In addition, the company provides electrical power, repair, and other infrastructure services to operate, maintain, and earn digital assets; and sells mining equipment to customers. Core Scientific, Inc. was founded in 2017 and is headquartered in Dover, Delaware.