Comparing CPI Card Group (NASDAQ:PMTS) & Foxx Development (NASDAQ:FOXX)

Foxx Development (NASDAQ:FOXX) and CPI Card Group (NASDAQ:PMTS) are both small-cap technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Volatility and Risk

Foxx Development has a beta of -0.34, suggesting that its share price is 134% less volatile than the S&P 500. Comparatively, CPI Card Group has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.

Institutional and Insider Ownership

60.4% of Foxx Development shares are owned by institutional investors. Comparatively, 22.1% of CPI Card Group shares are owned by institutional investors. 31.6% of Foxx Development shares are owned by insiders. Comparatively, 5.8% of CPI Card Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Foxx Development and CPI Card Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Foxx Development	-100.20%	N/A	-74.38%
CPI Card Group	2.34%	-145.74%	6.29%

Earnings & Valuation

This table compares Foxx Development and CPI Card Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Foxx Development	$52.58 million	0.27	-$52.69 million	($7.53)	-0.27
CPI Card Group	$543.53 million	0.57	$14.95 million	$1.15	23.38

CPI Card Group has higher revenue and earnings than Foxx Development. Foxx Development 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Foxx Development and CPI Card Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Foxx Development	1	0	0	0	1.00
CPI Card Group	0	2	4	0	2.67

CPI Card Group has a consensus target price of $30.25, indicating a potential upside of 12.50%. Given CPI Card Group’s stronger consensus rating and higher probable upside, analysts clearly believe CPI Card Group is more favorable than Foxx Development.

Summary

CPI Card Group beats Foxx Development on 11 of the 14 factors compared between the two stocks.

About Foxx Development

Foxx Development Holdings Inc. is a consumer electronics and integrated Internet-of-Things solution company catering to both retail and institutional clients. The company currently sells a diverse range of products including mobile phones, tablets and other consumer electronics devices principally in United State and is in the process of developing and distributing end-to-end communication terminals and IoT solutions. Foxx Development Holdings Inc., formerly known as Acri Capital Acquisition Corporation, is based in Austin, TX.

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.