Contrasting Papa Murphy’s (FRSH) & Compass Group (CMPGY)

Papa Murphy’s (NASDAQ: FRSH) and Compass Group (OTCMKTS:CMPGY) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Papa Murphy’s -0.01% 7.96% 2.96%
Compass Group N/A N/A N/A

Insider and Institutional Ownership

30.7% of Papa Murphy’s shares are owned by institutional investors. Comparatively, 0.2% of Compass Group shares are owned by institutional investors. 3.1% of Papa Murphy’s shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Papa Murphy’s has a beta of 0.11, indicating that its share price is 89% less volatile than the S&P 500. Comparatively, Compass Group has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Papa Murphy’s and Compass Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Papa Murphy’s 0 2 0 0 2.00
Compass Group 0 0 1 0 3.00

Papa Murphy’s presently has a consensus price target of $4.75, indicating a potential downside of 5.19%. Given Papa Murphy’s’ higher probable upside, equities analysts clearly believe Papa Murphy’s is more favorable than Compass Group.

Dividends

Compass Group pays an annual dividend of $0.58 per share and has a dividend yield of 2.7%. Papa Murphy’s does not pay a dividend. Compass Group pays out 63.0% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Papa Murphy’s and Compass Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Papa Murphy’s $118.66 million 0.72 -$10,000.00 $0.15 33.40
Compass Group $29.25 billion 1.15 $1.47 billion $0.92 23.01

Compass Group has higher revenue and earnings than Papa Murphy’s. Compass Group is trading at a lower price-to-earnings ratio than Papa Murphy’s, indicating that it is currently the more affordable of the two stocks.

Summary

Compass Group beats Papa Murphy’s on 9 of the 16 factors compared between the two stocks.

About Papa Murphy’s

Papa Murphy's Holdings, Inc., together with its subsidiaries, owns, operates, and franchises Take ?N' Bake pizza stores. As of May 10, 2017, it operated approximately 1,500 stores franchised and corporate-owned pizza stores in 39 states, Canada, and United Arab Emirates. The company was founded in 1981 and is headquartered in Vancouver, Washington.

About Compass Group

Compass Group PLC, through its subsidiaries, operates as a food and support services company in North America, Europe, and internationally. It serves business and industry; healthcare and seniors; education; sports and leisure; and defense, offshore, and remote sectors. The company also 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. Compass Group PLC was founded in 1941 and is based in Chertsey, the United Kingdom.

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