Head to Head Review: CompoSecure (NASDAQ:CMPO) & Core Scientific (NASDAQ:CORZ)

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

Insider & Institutional Ownership

37.6% of CompoSecure shares are held by institutional investors. 32.0% of Core Scientific shares are held by insiders. Comparatively, 75.0% of CompoSecure shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Core Scientific and CompoSecure, as provided by MarketBeat.com.

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

Core Scientific presently has a consensus price target of $18.38, indicating a potential upside of 16.58%. CompoSecure has a consensus price target of $15.79, indicating a potential upside of 21.43%. Given CompoSecure’s higher possible upside, analysts clearly believe CompoSecure is more favorable than Core Scientific.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Core Scientific	$502.40 million	8.77	-$1.51 billion	($5.41)	-2.91
CompoSecure	$390.63 million	2.93	$19.24 million	($0.44)	-29.55

CompoSecure has lower revenue, but higher earnings 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Core Scientific	N/A	N/A	N/A
CompoSecure	-5.63%	-14.87%	36.45%

Summary

Core Scientific beats CompoSecure on 8 of the 14 factors compared between the two stocks.

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.

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.