Compass Group (OTCMKTS:CMPGY) versus WW International (NASDAQ:WW) Critical Contrast

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

Institutional & Insider Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
WW International	-56.84%	N/A	-0.32%
Compass Group	N/A	N/A	N/A

Valuation & Earnings

This table compares WW International and Compass Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WW International	$710.64 million	0.23	-$112.25 million	($10.13)	-1.62
Compass Group	$46.07 billion	1.13	$1.87 billion	N/A	N/A

Compass Group has higher revenue and earnings than WW International.

Volatility and Risk

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

Analyst Ratings

This is a breakdown of recent recommendations for WW International and Compass Group, as provided by MarketBeat.com.

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

Summary

Compass Group beats WW International on 8 of the 11 factors compared between the two stocks.

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.

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.