Contrasting Innventure (NASDAQ:INV) and CPI Card Group (NASDAQ:PMTS)

Innventure (NASDAQ:INV) and CPI Card Group (NASDAQ:PMTS) are both small-cap technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Insider and Institutional Ownership

56.0% of Innventure shares are held by institutional investors. Comparatively, 22.1% of CPI Card Group shares are held by institutional investors. 14.3% of Innventure shares are held by insiders. Comparatively, 5.8% of CPI Card Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Innventure has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, CPI Card Group has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500.

Profitability

This table compares Innventure and CPI Card Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innventure	-3,022.42%	-21.34%	-17.20%
CPI Card Group	2.71%	-219.35%	6.99%

Earnings and Valuation

This table compares Innventure and CPI Card Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innventure	$2.06 million	6.57	-$293.32 million	($1.54)	-0.10
CPI Card Group	$607.70 million	0.45	$14.95 million	$1.37	16.99

CPI Card Group has higher revenue and earnings than Innventure. Innventure is trading at a lower price-to-earnings ratio than CPI Card Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Innventure and CPI Card Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innventure	2	0	0	0	1.00
CPI Card Group	0	2	4	0	2.67

Innventure presently has a consensus price target of $5.00, suggesting a potential upside of 3,105.13%. CPI Card Group has a consensus price target of $30.25, suggesting a potential upside of 29.94%. Given Innventure’s higher probable upside, analysts clearly believe Innventure is more favorable than CPI Card Group.

Summary

CPI Card Group beats Innventure on 9 of the 14 factors compared between the two stocks.

About Innventure

Innventure Inc. founds, funds and operates companies with a focus on transformative, sustainable technology solutions acquired or licensed from multinational corporations. Innventure Inc., formerly known as Learn CW Investment Corporation, is based in ORLANDO, Fla.

About CPI Card Group

CPI Card Group Inc., together with its subsidiaries, engages in the design, production, data personalization, packaging, and fulfillment of financial payment cards. It operates through Debit and Credit, and Prepaid Debit segments. The Debit and Credit segment produces financial payment cards and provides integrated card services to card-issuing financial institutions. Its products include Europay, Mastercard, and Visa (EMV) and non-EMV financial payment cards, including contact and contactless cards, plastic and encased metal cards, and Second Wave payment cards, as well as private label credit cards. This segment also provides on-demand services and various integrated card services, including card personalization and fulfillment, as well as instant issuance services. The Prepaid Debit segment primarily offers integrated card services comprising tamper-evident security packaging services to prepaid debit card providers. It also produces financial payment cards issued on the networks of the payment card brands. It serves issuers of debit and credit cards, Prepaid Debit Card program managers, community banks, credit unions, and group service providers in the United States. The company was formerly known as CPI Holdings I, Inc. and changed its name to CPI Card Group Inc. in August 2015. CPI Card Group Inc. was incorporated in 2007 and is headquartered in Littleton, Colorado.