49 is composite. A composite number is a number that has more than two factors, (1 and itself). A Prime number has only 1 and itself for factors (ie. 2). 1 is not a prime or composite, because 1 times itself would still be one, and there aren't any other factors. So, yes, 49 is composite, because you can do 1x49 or 7x7.
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49 has three factors: 1, 7 and 49 (it is square, s there is an odd number of factors). It has more than two factors, so it is composite.