Analyzing Compass Group (OTCMKTS:CMPGY) and Dave & Buster’s Entertainment (NASDAQ:PLAY)

Compass Group (OTCMKTS:CMPGY) and Dave & Buster’s Entertainment (NASDAQ:PLAY) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.

Insider and Institutional Ownership

0.0% of Compass Group shares are owned by institutional investors. Comparatively, 91.5% of Dave & Buster’s Entertainment shares are owned by institutional investors. 0.0% of Compass Group shares are owned by insiders. Comparatively, 2.0% of Dave & Buster’s Entertainment shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Compass Group and Dave & Buster’s Entertainment”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Compass Group	$46.16 billion	1.27	$1.40 billion	N/A	N/A
Dave & Buster’s Entertainment	$2.13 billion	0.34	$58.30 million	$1.01	20.97

Compass Group has higher revenue and earnings than Dave & Buster’s Entertainment.

Volatility and Risk

Compass Group has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Dave & Buster’s Entertainment has a beta of 2.04, meaning that its stock price is 104% more volatile than the S&P 500.

Profitability

This table compares Compass Group and Dave & Buster’s Entertainment’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
Dave & Buster’s Entertainment	0.46%	29.24%	1.24%

Analyst Ratings

This is a summary of recent ratings for Compass Group and Dave & Buster’s Entertainment, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compass Group	0	1	0	0	2.00
Dave & Buster’s Entertainment	1	6	2	0	2.11

Dave & Buster’s Entertainment has a consensus price target of $31.33, indicating a potential upside of 47.94%. Given Dave & Buster’s Entertainment’s stronger consensus rating and higher possible upside, analysts clearly believe Dave & Buster’s Entertainment is more favorable than Compass Group.

Summary

Dave & Buster’s Entertainment beats Compass Group on 9 of the 12 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 Dave & Buster’s Entertainment

Dave & Buster's Entertainment, Inc. owns and operates entertainment and dining venues for adults and families. Its venues offer a menu of entrees and appetizers, as well as a selection of non-alcoholic and alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events. The company operates its venues under the Dave & Buster's name. As of April 02, 2019, it owned and operated 125 venues in 39 states, Puerto Rico, and Canada. The company was founded in 1982 and is headquartered in Dallas, Texas.