CompoSecure (NASDAQ:CMPO) vs. Komatsu (OTCMKTS:KMTUY) Head to Head Contrast

Komatsu (OTCMKTS:KMTUY) and CompoSecure (NASDAQ:CMPO) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.

Volatility & Risk

Komatsu has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, CompoSecure has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Earnings and Valuation

This table compares Komatsu and CompoSecure”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Komatsu	$27.45 billion	1.57	$2.48 billion	$2.73	16.96
CompoSecure	$160.68 million	10.45	-$53.72 million	($2.16)	-6.15

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Komatsu and CompoSecure, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Komatsu	0	1	0	0	2.00
CompoSecure	0	0	6	0	3.00

CompoSecure has a consensus price target of $25.50, suggesting a potential upside of 92.02%. Given CompoSecure’s stronger consensus rating and higher probable upside, analysts plainly believe CompoSecure is more favorable than Komatsu.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Komatsu	8.93%	10.49%	5.98%
CompoSecure	-24.53%	-65.50%	26.83%

Insider and Institutional Ownership

0.2% of Komatsu shares are owned by institutional investors. Comparatively, 37.6% of CompoSecure shares are owned by institutional investors. 2.9% of Komatsu shares are owned by company insiders. Comparatively, 52.1% of CompoSecure shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

About Komatsu

Komatsu Ltd. manufactures and sells construction, mining, and utility equipment in Japan, the Americas, Europe, China, Rest of Asia, Oceania, the Middle East, Africa, and CIS countries. It operates through three segments: Construction, Mining and Utility Equipment; Retail Finance; and Industrial Machinery and Others. The company offers construction and mining equipment, including excavators, wheel loaders, bulldozers, motor graders, dump truck, rope and hybrid shovels, electric wheel loaders, continuous miners, and jumbo drills. It also provides forestry equipment, including harvesters, forwarders, feller bunchers, excavators, mini excavators, and forklifts; demolition, waste, and recycling equipment, such as mobile crushers, hydraulic excavators, wheel loaders, and mini shovels; material handling equipment; and tunnel-boring machines, pipe layers, towing tractors, and engines. In addition, the company offers industrial machinery, including presses, sheet-metal machinery, 3D laser cutting machine, transfer machines, battery manufacturing equipment, wire saws, thermos modules, thermoelectric generation module, and temperature control products; quarry equipment; agricultural and livestock equipment; EH sensor device; iron and steel casting products; and logistics equipment. Further, the company provides retail financing; construction machinery rental services; remanufactured products; other support services; transportation, warehousing, packing, and other services; and purchases and sells used equipment. Komatsu Ltd. was founded in 1884 and is headquartered in Tokyo, Japan.

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.