Compass Diversified (NYSE:CODI) and Tempur Sealy International (NYSE:TPX) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.
Profitability
This table compares Compass Diversified and Tempur Sealy International's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Compass Diversified | -1.23% | 12.05% | 5.06% |
Tempur Sealy International | 7.17% | 106.94% | 10.39% |
Insider and Institutional Ownership
28.6% of Compass Diversified shares are owned by institutional investors. Comparatively, 23.0% of Tempur Sealy International shares are owned by institutional investors. 2.7% of Compass Diversified shares are owned by company insiders. Comparatively, 3.1% of Tempur Sealy International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
Compass Diversified has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500. Comparatively, Tempur Sealy International has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500.
Valuation and Earnings
This table compares Compass Diversified and Tempur Sealy International's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Compass Diversified | $1.45 billion | 0.96 | $301.86 million | $1.73 | 12.35 |
Tempur Sealy International | $3.11 billion | 1.92 | $189.50 million | $1.00 | 28.84 |
Compass Diversified has higher earnings, but lower revenue than Tempur Sealy International. Compass Diversified is trading at a lower price-to-earnings ratio than Tempur Sealy International, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Compass Diversified and Tempur Sealy International, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Compass Diversified | 0 | 0 | 3 | 0 | 3.00 |
Tempur Sealy International | 0 | 1 | 6 | 1 | 3.00 |
Compass Diversified presently has a consensus price target of $21.00, indicating a potential downside of 1.73%. Tempur Sealy International has a consensus price target of $28.50, indicating a potential downside of 1.18%. Given Tempur Sealy International's higher possible upside, analysts plainly believe Tempur Sealy International is more favorable than Compass Diversified.
Summary
Tempur Sealy International beats Compass Diversified on 11 of the 14 factors compared between the two stocks.