Critical Survey: Iris Energy (NASDAQ:IREN) & CompoSecure (NASDAQ:CMPO)

Iris Energy (NASDAQ:IREN) and CompoSecure (NASDAQ:CMPO) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Volatility and Risk

Iris Energy has a beta of 3.6, suggesting that its share price is 260% more volatile than the S&P 500. Comparatively, CompoSecure has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Iris Energy and CompoSecure, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iris Energy	0	2	9	1	2.92
CompoSecure	0	1	7	0	2.88

Iris Energy currently has a consensus price target of $20.70, indicating a potential upside of 59.11%. CompoSecure has a consensus price target of $16.81, indicating a potential upside of 7.50%. Given Iris Energy’s stronger consensus rating and higher probable upside, research analysts clearly believe Iris Energy is more favorable than CompoSecure.

Profitability

This table compares Iris Energy and CompoSecure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iris Energy	-36.10%	-8.01%	-7.37%
CompoSecure	-5.63%	-14.87%	36.45%

Insider & Institutional Ownership

41.1% of Iris Energy shares are owned by institutional investors. Comparatively, 37.6% of CompoSecure shares are owned by institutional investors. 21.6% of Iris Energy shares are owned by insiders. Comparatively, 75.0% of CompoSecure shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Iris Energy and CompoSecure”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iris Energy	$188.76 million	12.95	-$28.95 million	N/A	N/A
CompoSecure	$390.63 million	3.53	$19.24 million	($0.44)	-35.55

CompoSecure has higher revenue and earnings than Iris Energy.

Summary

Iris Energy beats CompoSecure on 8 of the 13 factors compared between the two stocks.

About Iris Energy

Iris Energy Limited owns and operates bitcoin mining data centers. The company was incorporated in 2018 and is headquartered in Sydney, Australia.

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.