Critical Analysis: RocketFuel Blockchain (OTCMKTS:RKFL) vs. CompoSecure (NASDAQ:CMPO)

CompoSecure (NASDAQ:CMPO) and RocketFuel Blockchain (OTCMKTS:RKFL) are both small-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for CompoSecure and RocketFuel Blockchain, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CompoSecure	0	1	6	0	2.86
RocketFuel Blockchain	0	0	0	0	N/A

CompoSecure presently has a consensus target price of $11.71, indicating a potential upside of 50.96%. Given CompoSecure’s higher possible upside, analysts plainly believe CompoSecure is more favorable than RocketFuel Blockchain.

Earnings & Valuation

This table compares CompoSecure and RocketFuel Blockchain’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CompoSecure	$390.63 million	1.60	$19.24 million	$0.97	8.00
RocketFuel Blockchain	$200,000.00	3.36	-$3.78 million	($0.12)	-0.17

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

Insider & Institutional Ownership

37.6% of CompoSecure shares are owned by institutional investors. Comparatively, 7.2% of RocketFuel Blockchain shares are owned by institutional investors. 75.0% of CompoSecure shares are owned by company insiders. Comparatively, 28.7% of RocketFuel Blockchain shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

CompoSecure has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, RocketFuel Blockchain has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CompoSecure	5.14%	-11.00%	45.91%
RocketFuel Blockchain	N/A	N/A	N/A

Summary

CompoSecure beats RocketFuel Blockchain on 11 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 RocketFuel Blockchain

RocketFuel Blockchain, Inc. provides payment and check-out systems for shoppers on e-commerce sites using cryptocurrencies, bitcoin, and direct bank transfers. It also offers payout solutions, cross-border B2B transfer solutions, and other solutions, as well as invoicing and crypto payments services. The company has a strategic partnership with ACI Worldwide, Inc. to offer the cryptocurrency payment solution available to customers through ACI portals. RocketFuel Blockchain, Inc. was incorporated in 2018 and is headquartered in San Francisco, California.