VerifyMe (NASDAQ:VRME – Get Free Report) and CPI Card Group (NASDAQ:PMTS – Get Free Report) are both small-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.
Risk & Volatility
VerifyMe has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, CPI Card Group has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for VerifyMe and CPI Card Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| VerifyMe | 1 | 0 | 2 | 1 | 2.75 |
| CPI Card Group | 1 | 1 | 4 | 0 | 2.50 |
Earnings & Valuation
This table compares VerifyMe and CPI Card Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| VerifyMe | $24.21 million | 0.55 | -$3.82 million | ($0.38) | -2.82 |
| CPI Card Group | $480.60 million | 0.31 | $19.52 million | $1.20 | 10.78 |
CPI Card Group has higher revenue and earnings than VerifyMe. VerifyMe is trading at a lower price-to-earnings ratio than CPI Card Group, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
8.8% of VerifyMe shares are owned by institutional investors. Comparatively, 22.1% of CPI Card Group shares are owned by institutional investors. 19.7% of VerifyMe shares are owned by insiders. Comparatively, 2.8% of CPI Card Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares VerifyMe and CPI Card Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| VerifyMe | -21.78% | -11.64% | -9.22% |
| CPI Card Group | 2.79% | -58.98% | 4.69% |
Summary
CPI Card Group beats VerifyMe on 10 of the 15 factors compared between the two stocks.
About VerifyMe
VerifyMe, Inc., together with its subsidiary, PeriShip Global, LLC, operates as a technology solutions provider that specializes in products to connect brands with consumers and providing brands with end-to-end logistics management for their products. The company operates through two segments, VerifyMe Solutions and PeriShip Global Solutions. The VerifyMe Solutions segment offers technology solutions to connect brands with consumers allowing brand owners to gather business intelligence while engaging directly with their consumers. Its solutions provide brand protection and supply chain functions, such as counterfeit prevention, traceability, consumer engagement solutions, and authentication for labels, packaging, and products, as well as tamper-proof labels. The PeriShip Global Solutions segment offers predictive analytics for optimizing delivery of time and temperature sensitive perishable products. This segment's products include PeriTrack customer dashboard, an integrated web portal tool gives its customers an in-depth look at their shipping activities based on real-time data. It also provides call center, pre-transit, post-delivery, and weather/traffic services. The company has a strategic partnership with INX International Ink Company. The company was formerly known as LaserLock Technologies, Inc. and changed its name to VerifyMe, Inc. in July 2015. VerifyMe, Inc. was incorporated in 1999 and is headquartered in Lake Mary, Florida.
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.
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