Financial Review: Compass Group (OTCMKTS:CMPGY) versus WW International (NASDAQ:WW)

Compass Group (OTCMKTS:CMPGY) and WW International (NASDAQ:WW) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Risk & Volatility

Compass Group has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, WW International has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Compass Group and WW International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compass Group	0	0	2	2	3.50
WW International	1	2	0	0	1.67

Earnings and Valuation

This table compares Compass Group and WW International”s top-line 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	1.13	$1.87 billion	N/A	N/A
WW International	$710.64 million	0.23	-$112.25 million	($10.13)	-1.61

Compass Group has higher revenue and earnings than WW International.

Profitability

This table compares Compass Group and WW 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
WW International	-56.84%	N/A	-0.32%

Insider and Institutional Ownership

0.0% of Compass Group shares are held by institutional investors. Comparatively, 86.2% of WW International shares are held by institutional investors. 0.0% of Compass Group shares are held by insiders. Comparatively, 0.4% of WW International shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Compass Group beats WW International on 8 of the 11 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 WW International

WW International, Inc. provides weight management products and services worldwide. It offers a range of nutritional, activity, behavioral, and lifestyle tools and approaches products and services. The company also provides various digital subscription products to wellness and weight management business, which provide interactive and personalized resources that allow users to follow its weight management program through its app and web-based platform; and allows members to inspire and support each other by sharing their experiences with other people on weight health journeys. In addition, it licenses its trademarks and other intellectual property in food, beverages, and other relevant consumer products and services, as well as provides publishing services. The company was formerly known as Weight Watchers International, Inc. and changed its name to WW International, Inc. in September 2019. WW International, Inc. was founded in 1961 and is headquartered in New York, New York.