Critical Comparison: Cosmos Group (OTCMKTS:COSG) and CompoSecure (NASDAQ:CMPO)

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

Volatility & Risk

Cosmos Group has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, CompoSecure has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cosmos Group	$620,000.00	0.74	-$77.34 million	N/A	N/A
CompoSecure	$420.57 million	2.78	$19.24 million	($1.14)	-10.01

CompoSecure has higher revenue and earnings than Cosmos Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cosmos Group	N/A	N/A	-78.39%
CompoSecure	-5.63%	-14.87%	36.45%

Institutional & Insider Ownership

37.6% of CompoSecure shares are held by institutional investors. 0.4% of Cosmos Group shares are held by insiders. Comparatively, 75.0% of CompoSecure shares are held 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Cosmos Group and CompoSecure, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cosmos Group	0	0	0	0	0.00
CompoSecure	0	1	7	0	2.88

CompoSecure has a consensus target price of $16.19, suggesting a potential upside of 41.87%. Given CompoSecure’s stronger consensus rating and higher possible upside, analysts plainly believe CompoSecure is more favorable than Cosmos Group.

Summary

CompoSecure beats Cosmos Group on 9 of the 12 factors compared between the two stocks.

About Cosmos Group

Cosmos Group Holdings Inc. focuses on the physical artworks and collectibles business in Hong Kong and internationally. It operates online platform to sell and distribute the arts and collectibles to end-users with the use of blockchain technologies and minting tokens. The company is based in Singapore.

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.