Critical Contrast: Auto Trader Group (OTCMKTS:ATDRY) & Compass Group (OTCMKTS:CMPGY)

Auto Trader Group (OTCMKTS:ATDRY) and Compass Group (OTCMKTS:CMPGY) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Dividends

Auto Trader Group pays an annual dividend of $0.01 per share and has a dividend yield of 0.4%. Compass Group pays an annual dividend of $0.38 per share and has a dividend yield of 1.1%.

Volatility and Risk

Auto Trader Group has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Compass Group has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Auto Trader Group	N/A	N/A	N/A
Compass Group	N/A	N/A	N/A

Earnings and Valuation

This table compares Auto Trader Group 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
Auto Trader Group	$717.57 million	12.44	$322.92 million	N/A	N/A
Compass Group	$46.16 billion	1.24	$1.54 billion	N/A	N/A

Compass Group has higher revenue and earnings than Auto Trader Group.

Analyst Recommendations

This is a summary of current ratings and price targets for Auto Trader Group and Compass Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Auto Trader Group	0	0	0	0	0.00
Compass Group	0	1	0	0	2.00

Institutional and Insider Ownership

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

Summary

Compass Group beats Auto Trader Group on 6 of the 8 factors compared between the two stocks.

About Auto Trader Group

Auto Trader Group plc operates in the digital automotive marketplace in the United Kingdom and Ireland. The company provides vehicle advertisement on its websites for private sellers, as well as insurance and loan financing products to consumers; and display advertising on its websites for manufacturers and their advertising agencies. The company offers its products to retailers, home traders, and logistics firms. Auto Trader Group plc was founded in 1977 and is headquartered in Manchester, the United Kingdom.

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.