Adams Diversified Equity Fund (NYSE:ADX) & Compass Diversified (NYSE:CODI) Head-To-Head Analysis

Compass Diversified (NYSE:CODI) and Adams Diversified Equity Fund (NYSE:ADX) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current recommendations for Compass Diversified and Adams Diversified Equity Fund, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compass Diversified	2	3	1	0	1.83
Adams Diversified Equity Fund	0	0	0	0	0.00

Compass Diversified currently has a consensus price target of $11.50, suggesting a potential upside of 91.51%. Given Compass Diversified’s stronger consensus rating and higher possible upside, research analysts clearly believe Compass Diversified is more favorable than Adams Diversified Equity Fund.

Earnings and Valuation

This table compares Compass Diversified and Adams Diversified Equity Fund”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Compass Diversified	$1.87 billion	0.24	-$226.41 million	($3.88)	-1.55
Adams Diversified Equity Fund	N/A	N/A	N/A	N/A	N/A

Adams Diversified Equity Fund has lower revenue, but higher earnings than Compass Diversified.

Volatility and Risk

Compass Diversified has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Adams Diversified Equity Fund has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.

Insider and Institutional Ownership

72.7% of Compass Diversified shares are held by institutional investors. Comparatively, 28.4% of Adams Diversified Equity Fund shares are held by institutional investors. 1.8% of Compass Diversified shares are held by company insiders. Comparatively, 0.1% of Adams Diversified Equity Fund shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Compass Diversified and Adams Diversified Equity Fund’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Compass Diversified	-12.09%	24.48%	-0.32%
Adams Diversified Equity Fund	N/A	N/A	N/A

Summary

Compass Diversified beats Adams Diversified Equity Fund on 8 of the 10 factors compared between the two stocks.

About Compass Diversified

Compass Diversified is a private equity firm specializing in add on acquisitions, buyouts, industry consolidation, recapitalization, late stage and middle market investments. It seeks to invest in niche industrial or branded consumer companies, manufacturing, distribution, consumer products, business services sector, healthcare, safety & security, electronic components, food and foodservice. The firm prefers to invest in companies based in North America. It seeks to invest between $100 million and $800 million in companies with an EBITDA between $15 million to $80 million. It seeks to acquire controlling ownership interests in its portfolio companies and can make additional platform acquisitions. The firm prefer to have majority stake in companies. The firm invests through its balance sheet and typically holds investments between five to seven years. Compass Diversified was founded in 2006 and is based in Westport, Connecticut with an additional office in Costa Mesa, California.

About Adams Diversified Equity Fund

Adams Diversified Equity Fund, Inc. is a publicly owned investment manager. It primarily provides its services to investment companies. The firm is a large advisory firm The firm is actively engaged in businesses, including commodity pool operator or commodity trading advisor. The firm launches equity. NA The firm employs combination of fundamental, technical, quantitative modelling, and macro-economic analysis to make its investment. The firm conduct external research to make its investment. The firm was formerly known as The Adams Express Company. Adams Diversified Equity Fund, Inc. was founded in 1929 and is based in Baltimore, Maryland.