Compass Group (OTCMKTS:CMPGY) vs. CAVA Group (NYSE:CAVA) Head to Head Review

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

Profitability

This table compares Compass Group and CAVA Group’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
CAVA Group	5.40%	8.43%	4.90%

Risk & Volatility

Compass Group has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, CAVA Group has a beta of 1.9, suggesting that its share price is 90% more volatile than the S&P 500.

Earnings & Valuation

This table compares Compass Group and CAVA Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Compass Group	$46.07 billion	1.18	$1.87 billion	N/A	N/A
CAVA Group	$1.18 billion	7.60	$63.74 million	$0.54	142.63

Compass Group has higher revenue and earnings than CAVA Group.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Compass Group and CAVA Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compass Group	0	0	2	2	3.50
CAVA Group	1	11	14	1	2.56

CAVA Group has a consensus price target of $88.81, indicating a potential upside of 15.30%. Given CAVA Group’s higher possible upside, analysts plainly believe CAVA Group is more favorable than Compass Group.

Institutional & Insider Ownership

0.0% of Compass Group shares are owned by institutional investors. Comparatively, 73.2% of CAVA Group shares are owned by institutional investors. 0.0% of Compass Group shares are owned by insiders. Comparatively, 6.7% of CAVA Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

CAVA Group beats Compass Group on 9 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 CAVA Group

CAVA Group, Inc. owns and operates a chain of restaurants under the CAVA brand in the United States. The company also offers dips, spreads, and dressings through grocery stores. In addition, the company provides online and mobile ordering platforms. Cava Group, Inc. was founded in 2006 and is headquartered in Washington, the District of Columbia.