CompoSecure (NASDAQ:CMPO) & Atlas Copco (OTCMKTS:ATLKY) Financial Analysis

CompoSecure (NASDAQ:CMPO) and Atlas Copco (OTCMKTS:ATLKY) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.

Insider and Institutional Ownership

37.6% of CompoSecure shares are held by institutional investors. Comparatively, 0.0% of Atlas Copco shares are held by institutional investors. 52.1% of CompoSecure shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares CompoSecure and Atlas Copco”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CompoSecure	$160.68 million	11.18	-$53.72 million	($2.16)	-6.58
Atlas Copco	$17.21 billion	5.23	$2.70 billion	$0.59	31.34

Atlas Copco has higher revenue and earnings than CompoSecure. CompoSecure is trading at a lower price-to-earnings ratio than Atlas Copco, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for CompoSecure and Atlas Copco, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CompoSecure	0	0	2	0	3.00
Atlas Copco	1	2	5	1	2.67

CompoSecure currently has a consensus price target of $22.00, suggesting a potential upside of 54.82%. Given CompoSecure’s stronger consensus rating and higher possible upside, research analysts clearly believe CompoSecure is more favorable than Atlas Copco.

Profitability

This table compares CompoSecure and Atlas Copco’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%
Atlas Copco	15.69%	24.52%	13.12%

Risk and Volatility

CompoSecure has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Atlas Copco has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500.

Summary

Atlas Copco beats CompoSecure on 9 of the 15 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 Atlas Copco

Atlas Copco AB provides compressed air and gas, vacuum, energy, dewatering and industrial pump, industrial power tool, and assembly and machine vision solutions in North America, South America, Europe, Africa, the Middle East, Asia, and Oceania. It operates through Compressor Technique, Vacuum Technique, Industrial Technique, and Power Technique segments. The company offers piston compressors, oil-free tooth and scroll compressors, rotary screw compressors, oil-free blowers, oil-free centrifugal compressors, gas and process compressors, air and gas treatment equipment, expanders and pumps, and medical air solutions. It also provides oil-sealed rotary vane, dry, and liquid ring vacuum pumps; turbomolecular and cryogenic pumps; abatement and integrated systems; industrial assembly tools and solutions; self-pierce riveting solutions; adhesive dispensing and flow drill fastening equipment; material removal tools, and drills and other pneumatic products; machine vision solutions; construction and demolition tools; mobile compressors, generators, and energy storage systems; and industrial flow, portable power, portable flow, and portable air products, as well as specialty rental services. The company serves the semiconductor and flat panel, industrial manufacturing, civil engineering, demolition, exploration drilling, automotive, off-highway vehicles, electronics, aerospace, energy, food, pharmaceutical, textile, and other industries. Atlas Copco AB was founded in 1873 and is headquartered in Nacka, Sweden.