CompoSecure (NASDAQ:CMPO – Get Free Report) and Iris Energy (NASDAQ:IREN – Get Free Report) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.
Profitability
This table compares CompoSecure and Iris Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CompoSecure | -5.63% | -14.87% | 36.45% |
| Iris Energy | -17.94% | -3.98% | -3.33% |
Volatility & Risk
CompoSecure has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Iris Energy has a beta of 3.6, indicating that its stock price is 260% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CompoSecure | 0 | 1 | 7 | 0 | 2.88 |
| Iris Energy | 0 | 2 | 9 | 1 | 2.92 |
CompoSecure currently has a consensus target price of $16.81, suggesting a potential downside of 0.58%. Iris Energy has a consensus target price of $20.70, suggesting a potential upside of 67.48%. Given Iris Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Iris Energy is more favorable than CompoSecure.
Insider and Institutional Ownership
37.6% of CompoSecure shares are owned by institutional investors. Comparatively, 41.1% of Iris Energy shares are owned by institutional investors. 75.0% of CompoSecure shares are owned by insiders. Comparatively, 21.6% of Iris Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares CompoSecure and Iris Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CompoSecure | $390.63 million | 3.82 | $19.24 million | ($0.44) | -38.43 |
| Iris Energy | $188.76 million | 12.30 | -$28.95 million | N/A | N/A |
CompoSecure has higher revenue and earnings than Iris Energy.
Summary
Iris Energy beats CompoSecure on 8 of the 13 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 Iris Energy
Iris Energy Limited owns and operates bitcoin mining data centers. The company was incorporated in 2018 and is headquartered in Sydney, Australia.
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