Cheesecake Factory (NASDAQ:CAKE) & Compass Group (OTCMKTS:CMPGY) Financial Survey

Cheesecake Factory (NASDAQ:CAKE) and Compass Group (OTCMKTS:CMPGY) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Profitability

This table compares Cheesecake Factory and Compass Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cheesecake Factory	4.33%	47.25%	6.01%
Compass Group	N/A	N/A	N/A

Dividends

Cheesecake Factory pays an annual dividend of $1.08 per share and has a dividend yield of 2.4%. Compass Group pays an annual dividend of $0.41 per share and has a dividend yield of 1.3%. Cheesecake Factory pays out 32.7% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Cheesecake Factory and Compass Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheesecake Factory	$3.71 billion	0.61	$156.78 million	$3.30	13.79
Compass Group	$46.16 billion	1.19	$1.40 billion	N/A	N/A

Compass Group has higher revenue and earnings than Cheesecake Factory.

Insider & Institutional Ownership

94.5% of Cheesecake Factory shares are owned by institutional investors. Comparatively, 0.0% of Compass Group shares are owned by institutional investors. 8.4% of Cheesecake Factory shares are owned by insiders. Comparatively, 0.0% of Compass Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Cheesecake Factory and Compass Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheesecake Factory	4	5	10	0	2.32
Compass Group	0	0	0	1	4.00

Cheesecake Factory currently has a consensus price target of $59.18, indicating a potential upside of 30.02%. Given Cheesecake Factory’s higher possible upside, analysts clearly believe Cheesecake Factory is more favorable than Compass Group.

Risk and Volatility

Cheesecake Factory has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Compass Group has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.

Summary

Cheesecake Factory beats Compass Group on 9 of the 15 factors compared between the two stocks.

About Cheesecake Factory

The Cheesecake Factory Incorporated operates and licenses restaurants in the United States and Canada. The company operates bakeries that produce cheesecakes and other baked products for its restaurants, international licensees, third-party bakery customers, external foodservice operators, retailers, and distributors. It operates restaurants under the brands comprising The Cheesecake Factory, North Italia, Flower Child, Fox Restaurant Concepts. The Cheesecake Factory Incorporated was founded in 1972 and is headquartered in Calabasas, California.

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.