Don't use -composite for -shadow imagees! Composite may not expand the image to account for the space of the shadow, thus it is getting clipped.
Also composite is a low level operator that does not use a 'layer offset' that shadow produces. Proper layering commands feeds the internal 'composite' operator with the correct layering offsets. As such your shadow image is probably not even positioned right (according to the arguments given to the -shadow operator)
This is why -layers merge is used, it expands the 'canvas' used to layer both images (foreground and shadow) so that the canvas contains both images in total, at the offsets specified in the images, even if the final image needs a negative offset to align the images correctly (the offset is typically removed and ignored in final result using +repage)
See IM Examples shadowing...
http://www.imagemagick.org/Usage/blur/#shadow