CompoSecure (NASDAQ:CMPO – Get Free Report) and PAR Technology (NYSE:PAR – Get Free Report) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.
Insider & Institutional Ownership
37.6% of CompoSecure shares are owned by institutional investors. 52.1% of CompoSecure shares are owned by insiders. Comparatively, 2.3% of PAR Technology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk and Volatility
CompoSecure has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, PAR Technology has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CompoSecure | $160.68 million | 9.65 | -$53.72 million | ($2.16) | -5.68 |
| PAR Technology | $455.55 million | 1.39 | -$84.46 million | ($1.87) | -8.19 |
CompoSecure has higher earnings, but lower revenue than PAR Technology. PAR Technology is trading at a lower price-to-earnings ratio than CompoSecure, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings for CompoSecure and PAR Technology, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CompoSecure | 0 | 0 | 6 | 0 | 3.00 |
| PAR Technology | 1 | 1 | 5 | 0 | 2.57 |
CompoSecure currently has a consensus target price of $25.50, indicating a potential upside of 107.82%. PAR Technology has a consensus target price of $30.67, indicating a potential upside of 100.13%. Given CompoSecure’s stronger consensus rating and higher possible upside, equities analysts plainly believe CompoSecure is more favorable than PAR Technology.
Profitability
This table compares CompoSecure and PAR Technology’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% |
| PAR Technology | -16.04% | -2.57% | -1.56% |
Summary
CompoSecure beats PAR Technology 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 PAR Technology
PAR Technology Corporation, together with its subsidiaries, provides omnichannel cloud-based hardware and software solutions to the restaurant and retail industries worldwide. The Restaurant/Retail segment offers PUNCHH, an enterprise-grade customer loyalty and engagement solution; MENU, an eCommerce platform for restaurant brands; BRINK POS, an open cloud, point-of-sale solution; PAR PAYMENT SERVICES, a merchant services business that enables electronic payment and processing services for businesses; and DATA CENTRAL, a back-office solution that leverages business intelligence and automation technologies. This segment also offers Point-of-Sale Hardware; wireless headsets for drive-thru order-taking; and kitchen display systems, payment devices, cash drawers, printers, and other peripherals. In addition, this segment provides services, such as hardware repair, installation and implementation, training, and on-site and technical support services. The Government segment provides intelligence, surveillance, and reconnaissance solutions; mission systems operations and maintenance, and commercial software products; systems engineering support and software-based solutions; satellite and teleport facility operation and maintenance, engineering, and installation services comprising inside and outside plant services, and maintenance of infrastructure and information systems; satellite ground system support comprising operations and maintenance, sustainment, upgrades, communications security management, anomaly response/resolution, process improvement, emergency response, and disaster recovery services; and information technology infrastructure library services to the United States Department of Defense, intelligence community (IC), and other federal agencies. This segment also offers various IC support services, systems integration, situational awareness solutions, and mission readiness support services. The company was founded in 1968 and is based in New Hartford, New York.
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