Art’s-Way Manufacturing (NASDAQ:ARTW – Get Free Report) and CompoSecure (NASDAQ:CMPO – Get Free Report) are both small-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.
Analyst Recommendations
This is a summary of current ratings and target prices for Art’s-Way Manufacturing and CompoSecure, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Art’s-Way Manufacturing | 1 | 0 | 0 | 0 | 1.00 |
| CompoSecure | 0 | 0 | 5 | 0 | 3.00 |
CompoSecure has a consensus target price of $26.00, suggesting a potential upside of 108.50%. Given CompoSecure’s stronger consensus rating and higher possible upside, analysts plainly believe CompoSecure is more favorable than Art’s-Way Manufacturing.
Risk and Volatility
Art’s-Way Manufacturing has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, CompoSecure has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.
Insider & Institutional Ownership
2.9% of Art’s-Way Manufacturing shares are held by institutional investors. Comparatively, 37.6% of CompoSecure shares are held by institutional investors. 51.5% of Art’s-Way Manufacturing shares are held by insiders. Comparatively, 52.1% of CompoSecure shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Art’s-Way Manufacturing and CompoSecure’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Art’s-Way Manufacturing | -1.65% | -3.06% | -1.72% |
| CompoSecure | -24.53% | -65.50% | 26.83% |
Earnings and Valuation
This table compares Art’s-Way Manufacturing and CompoSecure”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Art’s-Way Manufacturing | $22.98 million | 0.72 | $1.03 million | ($0.09) | -35.11 |
| CompoSecure | $160.68 million | 9.81 | -$53.72 million | ($2.16) | -5.77 |
Art’s-Way Manufacturing has higher earnings, but lower revenue than CompoSecure. Art’s-Way Manufacturing is trading at a lower price-to-earnings ratio than CompoSecure, indicating that it is currently the more affordable of the two stocks.
Summary
CompoSecure beats Art’s-Way Manufacturing on 9 of the 14 factors compared between the two stocks.
About Art’s-Way Manufacturing
Art’s-Way Manufacturing Co., Inc. manufactures and distributes farm equipment products. It operates through the Agricultural Products, and Modular Buildings segments. The Agricultural Products segment manufactures a variety of specialized farm machinery under its own label including portable and stationary animal feed processing equipment and related attachments used to mill and mix feed grains into custom animal feed rations, a line of forage equipment consisting of forage boxes, bale processors, running gear, and dump boxes, a line of manure spreaders, sugar beet harvesting equipment, and a line of dirt work equipment. The Modular Buildings segment produces and sells modular buildings, which are custom designed to meet the specific research needs of its customers. It also provides services relating to the design, manufacturing, delivery, installation and renting of the building units that it produces. The company was founded by Arthur Luscombe in 1956 and is headquartered in Armstrong, IA.
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.
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