Head-To-Head Comparison: Dell Technologies (NYSE:DELL) and CPI Card Group (NASDAQ:PMTS)

CPI Card Group (NASDAQ:PMTS) and Dell Technologies (NYSE:DELL) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CPI Card Group	2.34%	-145.74%	6.29%
Dell Technologies	7.53%	-578.85%	10.64%

Analyst Recommendations

This is a summary of current ratings and price targets for CPI Card Group and Dell Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CPI Card Group	0	2	4	0	2.67
Dell Technologies	0	8	27	1	2.81

CPI Card Group currently has a consensus price target of $30.25, indicating a potential upside of 18.44%. Dell Technologies has a consensus price target of $571.12, indicating a potential downside of 2.85%. Given CPI Card Group’s higher probable upside, research analysts clearly believe CPI Card Group is more favorable than Dell Technologies.

Volatility and Risk

CPI Card Group has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Dell Technologies has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500.

Insider & Institutional Ownership

22.1% of CPI Card Group shares are owned by institutional investors. Comparatively, 76.4% of Dell Technologies shares are owned by institutional investors. 5.8% of CPI Card Group shares are owned by insiders. Comparatively, 41.5% of Dell Technologies shares are owned 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.

Earnings and Valuation

This table compares CPI Card Group and Dell Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CPI Card Group	$543.53 million	0.54	$14.95 million	$1.15	22.21
Dell Technologies	$113.54 billion	3.29	$5.94 billion	$17.23	34.12

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

Summary

Dell Technologies beats CPI Card Group on 13 of the 15 factors compared between the two stocks.

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.

About Dell Technologies

Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas, Europe, the Middle East, Asia, and internationally. The company operates through two segments, Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). The ISG segment provides modern and traditional storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage; and general-purpose and AI-optimized servers. This segment also offers networking products and services comprising wide area network infrastructure, data center and edge networking switches, and cables and optics that help its business customers to transform and modernize their infrastructure, mobilize and enrich end-user experiences, and accelerate business applications and processes; software and peripherals; and consulting, support, and deployment services. The CSG segment provides desktops, workstations, and notebooks; displays, docking stations, keyboards, mice, webcam, and audio devices; and third-party software and peripherals, as well as configuration, support and deployment, and extended warranty services. It is involved in cybersecurity technology-driven security solutions to prevent security breaches, detect malicious activity, respond rapidly when a security breach occurs, and identify emerging threats; originating, collecting, and servicing customer financing arrangements; and the resale of VMware products and services. The company serves enterprises, public institutions, and small and medium-sized businesses through its direct sales channel, value-added resellers, system integrators, distributors, and retailers. The company was formerly known as Denali Holding Inc. and changed its name to Dell Technologies Inc. in August 2016. Dell Technologies Inc. was founded in 1984 and is headquartered in Round Rock, Texas.