Compass Group (OTCMKTS:CMPGY) vs. Brinker International (NYSE:EAT) Financial Comparison

Compass Group (OTCMKTS:CMPGY) and Brinker International (NYSE:EAT) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Compass Group	N/A	N/A	N/A
Brinker International	7.98%	134.92%	17.04%

Analyst Ratings

This is a summary of current ratings for Compass Group and Brinker International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compass Group	0	0	2	2	3.50
Brinker International	0	6	13	1	2.75

Brinker International has a consensus price target of $186.61, suggesting a potential upside of 30.24%. Given Brinker International’s higher possible upside, analysts clearly believe Brinker International is more favorable than Compass Group.

Institutional and Insider Ownership

0.0% of Compass Group shares are held by institutional investors. 0.0% of Compass Group shares are held by company insiders. Comparatively, 1.4% of Brinker International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Compass Group	$46.07 billion	1.04	$1.87 billion	N/A	N/A
Brinker International	$5.38 billion	1.16	$383.10 million	$9.89	14.49

Compass Group has higher revenue and earnings than Brinker International.

Risk & Volatility

Compass Group has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Brinker International has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500.

Summary

Brinker International beats Compass Group on 8 of the 13 factors compared between the two stocks.

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.

About Brinker International

Brinker International, Inc., together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. It operates and franchises Chili's Grill & Bar and Maggiano's Little Italy restaurant brands. The company also operates virtual brands, It's Just Wings. Brinker International, Inc. was founded in 1975 and is headquartered in Dallas, Texas.