COMPASS Grp PLC/S (OTCMKTS:CMPGY) and SMURFIT KAPPA G/ADR (OTCMKTS:SMFKY) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Dividends

COMPASS Grp PLC/S pays an annual dividend of $0.29 per share and has a dividend yield of 1.3%. SMURFIT KAPPA G/ADR pays an annual dividend of $1.11 per share and has a dividend yield of 2.7%. COMPASS Grp PLC/S pays out 31.5% of its earnings in the form of a dividend. SMURFIT KAPPA G/ADR pays out 55.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Earnings and Valuation

This table compares COMPASS Grp PLC/S and SMURFIT KAPPA G/ADR’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
COMPASS Grp PLC/S $29.25 billion 1.21 $1.47 billion $0.92 24.28
SMURFIT KAPPA G/ADR $9.67 billion 1.00 $471.33 million $1.99 20.41

COMPASS Grp PLC/S has higher revenue and earnings than SMURFIT KAPPA G/ADR. SMURFIT KAPPA G/ADR is trading at a lower price-to-earnings ratio than COMPASS Grp PLC/S, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares COMPASS Grp PLC/S and SMURFIT KAPPA G/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
COMPASS Grp PLC/S N/A N/A N/A
SMURFIT KAPPA G/ADR 4.93% 16.50% 4.76%

Institutional and Insider Ownership

0.2% of COMPASS Grp PLC/S shares are owned by institutional investors. Comparatively, 0.9% of SMURFIT KAPPA G/ADR shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

COMPASS Grp PLC/S has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500. Comparatively, SMURFIT KAPPA G/ADR has a beta of -0.74, indicating that its share price is 174% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for COMPASS Grp PLC/S and SMURFIT KAPPA G/ADR, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
COMPASS Grp PLC/S 0 0 3 0 3.00
SMURFIT KAPPA G/ADR 0 1 0 0 2.00

Summary

COMPASS Grp PLC/S beats SMURFIT KAPPA G/ADR on 8 of the 14 factors compared between the two stocks.

About COMPASS Grp PLC/S

Compass Group PLC, through its subsidiaries, operates as a food and support services company in North America, Europe, and internationally. It serves business and industry; healthcare and seniors; education; sports and leisure; and defense, offshore, and remote sectors. The company also 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. Compass Group PLC was founded in 1941 and is based in Chertsey, the United Kingdom.

About SMURFIT KAPPA G/ADR

Smurfit Kappa Group plc, together with its subsidiaries, manufactures, distributes, and sells paper-based packaging products. The company operates through Europe and the Americas segments. It offers containerboards, corrugated containers, and other paper-based packaging products, such as solid boards, graphic boards, and bag-in-box. The company's product portfolio includes containerboards, including brown kraftliners and testliners, recycled flutings, semi chemical flutings, and white top kraftliners and testliners; core boards, corrugated sheet boards, folding carton sheet boards, kraft papers, preprinted liners, printing and writing papers, sack kraft papers, and solid board sheets; and standard, food, consumer, industrial, postal, protective, and retail packaging products, as well as paper bags and sacks, and point of sale displays packaging products. It also provides recovered paper; pulp and seedlings; and packing machines, such as bag-in-box, corrugated and solid board, and folding carton machines. In addition, Smurfit Kappa Group plc operates as a finance company. The company serves food, beverage, and household consumables sectors. Smurfit Kappa Group plc was founded in 1934 and is headquartered in Dublin, Ireland.

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