Compass Group (OTCMKTS:CMPGY) versus Brinker International (NYSE:EAT) Head to Head Comparison
by Mitch Edgeman · The Markets DailyBrinker International (NYSE:EAT – Get Free Report) and Compass Group (OTCMKTS:CMPGY – Get Free Report) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.
Institutional and Insider Ownership
0.0% of Compass Group shares are owned by institutional investors. 1.4% of Brinker 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Brinker International has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500. Comparatively, Compass Group has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations for Brinker International and Compass Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Brinker International | 0 | 6 | 13 | 1 | 2.75 |
| Compass Group | 0 | 0 | 2 | 2 | 3.50 |
Brinker International presently has a consensus target price of $186.44, indicating a potential upside of 30.51%. Given Brinker International’s higher probable upside, equities research analysts clearly believe Brinker International is more favorable than Compass Group.
Profitability
This table compares Brinker International and Compass Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Brinker International | 7.98% | 134.92% | 17.04% |
| Compass Group | N/A | N/A | N/A |
Earnings and Valuation
This table compares Brinker International and Compass Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Brinker International | $5.38 billion | 1.16 | $383.10 million | $9.89 | 14.44 |
| Compass Group | $46.07 billion | 1.12 | $1.87 billion | N/A | N/A |
Compass Group has higher revenue and earnings than Brinker International.
Summary
Brinker International beats Compass Group on 8 of the 13 factors compared between the two stocks.
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.
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.