Contrasting Blackhawk Network Holdings (NASDAQ:HAWK) and CPI Card Group (PMTS)

Blackhawk Network Holdings (NASDAQ: HAWK) and CPI Card Group (NASDAQ:PMTS) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitabiliy, analyst recommendations, valuation, institutional ownership and earnings.

Profitability

This table compares Blackhawk Network Holdings and CPI Card Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blackhawk Network Holdings -0.01% 5.49% 1.55%
CPI Card Group -2.46% -1.51% 0.56%

Dividends

CPI Card Group pays an annual dividend of $0.18 per share and has a dividend yield of 15.0%. Blackhawk Network Holdings does not pay a dividend. CPI Card Group pays out -150.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Blackhawk Network Holdings and CPI Card Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blackhawk Network Holdings 0 4 8 0 2.67
CPI Card Group 2 4 1 0 1.86

Blackhawk Network Holdings presently has a consensus target price of $45.42, indicating a potential upside of 8.39%. CPI Card Group has a consensus target price of $4.90, indicating a potential upside of 308.33%. Given CPI Card Group’s higher possible upside, analysts plainly believe CPI Card Group is more favorable than Blackhawk Network Holdings.

Insider & Institutional Ownership

99.6% of Blackhawk Network Holdings shares are owned by institutional investors. Comparatively, 22.2% of CPI Card Group shares are owned by institutional investors. 3.8% of Blackhawk Network Holdings shares are owned by insiders. Comparatively, 4.6% 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 stock will outperform the market over the long term.

Risk and Volatility

Blackhawk Network Holdings has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, CPI Card Group has a beta of -0.13, suggesting that its stock price is 113% less volatile than the S&P 500.

Earnings & Valuation

This table compares Blackhawk Network Holdings and CPI Card Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Blackhawk Network Holdings $2.01 billion 1.18 $144.84 million ($0.01) -4,190.00
CPI Card Group $270.44 million 0.25 $32.41 million ($0.12) -10.00

Blackhawk Network Holdings has higher revenue and earnings than CPI Card Group. Blackhawk Network Holdings 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.

Summary

Blackhawk Network Holdings beats CPI Card Group on 12 of the 16 factors compared between the two stocks.

About Blackhawk Network Holdings

Blackhawk Network Holdings, Inc. is a prepaid payment network. The Company operates through three segments: U.S. Retail, International, and Incentives & Rewards. The U.S. Retail segment is engaged in the sale of prepaid products to consumers at its retail distribution partners and online and the sale of telecom handsets to retail distribution partners for resale to consumers. Its Incentives & Rewards segment is engaged in the sale of prepaid products, software and services to its business clients. It distributes closed loop gift cards in categories, including digital media and e-commerce, dining, electronics, entertainment, fashion and travel. It distributes a range of prepaid wireless or cellular cards. It also provides reloads for reloadable prepaid products, including prepaid telecom accounts and general-purpose reloadable cards. Its incentives businesses provide software, consulting services, program management, reward processing and reward fulfillment to its business clients.

About CPI Card Group

CPI Card Group Inc., formerly CPI Holdings I, Inc., provides Financial Payment Card solutions in North America. The Company is engaged in the design, production, data personalization, packaging and fulfillment of Financial Payment Cards, which it defines as credit cards, debit cards and prepaid debit cards issued on the networks of the Payment Card Brands in the United States, Europe and Canada. It is also engaged in the design, production, data personalization, packaging and fulfillment of retail gift and loyalty cards. Its segments include U.S. Debit and Credit, which produces Financial Payment Cards and provides integrated card services to card-issuing banks in the United States; U.S. Prepaid Debit, which provides integrated card services to Prepaid Debit Card issuers in the United States; U.K. Limited, which produces retail cards for customers in the United Kingdom and continental Europe, and Other, which has operations in Ontario, Canada and Petersfield, United Kingdom.

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