Compass Diversified (NYSE:CODI – Get Free Report) and American Bitcoin (NASDAQ:ABTC – Get Free Report) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.
Earnings and Valuation
This table compares Compass Diversified and American Bitcoin”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Compass Diversified | $1.87 billion | 0.44 | -$226.41 million | ($2.17) | -5.01 |
| American Bitcoin | $185.16 million | 3.04 | -$153.17 million | ($3.05) | -2.53 |
Risk and Volatility
Compass Diversified has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500. Comparatively, American Bitcoin has a beta of 3.96, suggesting that its stock price is 296% more volatile than the S&P 500.
Insider & Institutional Ownership
72.7% of Compass Diversified shares are owned by institutional investors. Comparatively, 10.2% of American Bitcoin shares are owned by institutional investors. 1.6% of Compass Diversified shares are owned by insiders. Comparatively, 2.6% of American Bitcoin shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and recommmendations for Compass Diversified and American Bitcoin, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Compass Diversified | 1 | 2 | 3 | 0 | 2.33 |
| American Bitcoin | 1 | 1 | 4 | 0 | 2.50 |
Compass Diversified currently has a consensus target price of $16.50, suggesting a potential upside of 51.79%. American Bitcoin has a consensus target price of $37.50, suggesting a potential upside of 385.12%. Given American Bitcoin’s stronger consensus rating and higher probable upside, analysts plainly believe American Bitcoin is more favorable than Compass Diversified.
Profitability
This table compares Compass Diversified and American Bitcoin’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Compass Diversified | -5.38% | -10.36% | -0.10% |
| American Bitcoin | -71.75% | -29.89% | -15.52% |
Summary
American Bitcoin beats Compass Diversified on 8 of the 14 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 American Bitcoin
Gryphon Digital Mining is an innovative venture in the bitcoin space. Gryphon Digital Mining, formerly known as Akerna Corp., is based in DENVER.
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