Restaurant Brands International (NYSE:QSR) vs. Compass Group (OTCMKTS:CMPGY) Financial Comparison

Restaurant Brands International (NYSE:QSR) and Compass Group (OTCMKTS:CMPGY) are both large-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Restaurant Brands International and Compass Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Restaurant Brands International	9.96%	32.80%	6.67%
Compass Group	N/A	N/A	N/A

Valuation and Earnings

This table compares Restaurant Brands International and Compass Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Restaurant Brands International	$9.43 billion	2.93	$776.00 million	$2.84	28.07
Compass Group	$46.07 billion	1.09	$1.87 billion	N/A	N/A

Compass Group has higher revenue and earnings than Restaurant Brands International.

Dividends

Restaurant Brands International pays an annual dividend of $2.60 per share and has a dividend yield of 3.3%. Compass Group pays an annual dividend of $0.83 per share and has a dividend yield of 2.8%. Restaurant Brands International pays out 91.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Restaurant Brands International has increased its dividend for 10 consecutive years. Restaurant Brands International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Restaurant Brands International has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, Compass Group has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.

Institutional and Insider Ownership

82.3% of Restaurant Brands International shares are owned by institutional investors. Comparatively, 0.0% of Compass Group shares are owned by institutional investors. 1.3% of Restaurant Brands International shares are owned by company insiders. Comparatively, 0.0% of Compass Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Restaurant Brands International and Compass Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Restaurant Brands International	1	9	16	0	2.58
Compass Group	0	0	2	2	3.50

Restaurant Brands International presently has a consensus price target of $83.33, suggesting a potential upside of 4.54%. Given Restaurant Brands International’s higher probable upside, equities analysts plainly believe Restaurant Brands International is more favorable than Compass Group.

Summary

Restaurant Brands International beats Compass Group on 10 of the 16 factors compared between the two stocks.

About Restaurant Brands International

Restaurant Brands International Inc. operates as a quick-service restaurant company in Canada, the United States, and internationally. It operates through four segments: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), and Firehouse Subs (FHS). The company owns and franchises TH chain of donut/coffee/tea restaurants that offer blend coffee, tea, and espresso-based hot and cold specialty drinks; and fresh baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups, and other food products. It is also involved in owning and franchising BK, a fast-food hamburger restaurant chain, which offers flame-grilled hamburgers, chicken and other specialty sandwiches, French fries, soft drinks, and other food items; and PLK quick service restaurants that provide Louisiana-style fried chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items. In addition, the company owns and franchises FHS quick service restaurants that offer meats and cheese, chopped salads, chili and soups, signature and other sides, soft drinks, and local specialties. The company was founded in 1954 and is headquartered in Toronto, Canada.

About Compass Group

Compass Group PLC operates as a food and support services company in North America, Europe, and internationally. The company offers support services, such as cleaning in hospitals; reception services at corporate headquarters; managing remote camps; grounds and facilities services at schools and universities; and others. It serves business and industry; healthcare and senior living market; education; sports and leisure; and defense, offshore, and remote sectors. Compass Group PLC was founded in 1941 and is based in Chertsey, the United Kingdom.