Comparing Repay (NASDAQ:RPAY) & CompoSecure (NASDAQ:CMPO)

CompoSecure (NASDAQ:CMPO) and Repay (NASDAQ:RPAY) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

37.6% of CompoSecure shares are owned by institutional investors. Comparatively, 82.7% of Repay shares are owned by institutional investors. 52.1% of CompoSecure shares are owned by insiders. Comparatively, 12.0% of Repay shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CompoSecure	$420.57 million	4.73	-$53.72 million	($1.68)	-11.58
Repay	$313.04 million	1.75	-$10.16 million	($1.26)	-4.37

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for CompoSecure and Repay, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CompoSecure	0	1	6	0	2.86
Repay	0	5	4	0	2.44

CompoSecure currently has a consensus price target of $17.0714, suggesting a potential downside of 12.23%. Repay has a consensus price target of $7.2222, suggesting a potential upside of 31.07%. Given Repay’s higher probable upside, analysts plainly believe Repay is more favorable than CompoSecure.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CompoSecure	-24.53%	-65.50%	26.83%
Repay	-35.79%	8.89%	4.31%

Volatility and Risk

CompoSecure has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Repay has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500.

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 Repay

Repay Holdings Corporation, payments technology company, provides integrated payment processing solutions to industry-oriented markets in the United States. It operates through two segments: Consumer Payments and Business Payments. The company's payment processing solutions enable consumers and businesses to make payments using electronic payment methods. It also offers a range of solutions relating to electronic payment methods, including credit and debit card processing, automated clearing house (ACH) processing, e-cash, and digital wallet services; virtual credit card processing, enhanced ACH processing, instant funding, clearing and settlement, and communication solutions; and proprietary payment channels that include Web-based, virtual terminal, online client portal, mobile application, text-to-pay, interactive voice response, and point of sale services. It serves customers primarily operating in the personal loans, automotive loans, receivables management, and business-to-business verticals through direct sales representatives and software integration partners. The company was founded in 2006 and is headquartered in Atlanta, Georgia.