BlackRock MuniYield Quality Fund (NYSE:MQY) & Compass Diversified (NYSE:CODI) Financial Contrast

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

Insider and Institutional Ownership

72.7% of Compass Diversified shares are owned by institutional investors. Comparatively, 25.5% of BlackRock MuniYield Quality Fund shares are owned by institutional investors. 1.8% of Compass Diversified shares are owned by company insiders. Comparatively, 1.0% of BlackRock MuniYield Quality Fund shares are owned by company 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.

Earnings and Valuation

This table compares Compass Diversified and BlackRock MuniYield Quality 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	$2.20 billion	0.21	-$208.86 million	($2.74)	-2.23
BlackRock MuniYield Quality Fund	N/A	N/A	N/A	N/A	N/A

BlackRock MuniYield Quality Fund has lower revenue, but higher earnings than Compass Diversified.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Compass Diversified and BlackRock MuniYield Quality Fund, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compass Diversified	2	3	1	0	1.83
BlackRock MuniYield Quality Fund	0	0	0	0	0.00

Compass Diversified presently has a consensus target price of $13.00, suggesting a potential upside of 112.84%. Given Compass Diversified’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Compass Diversified is more favorable than BlackRock MuniYield Quality Fund.

Profitability

This table compares Compass Diversified and BlackRock MuniYield Quality Fund’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Compass Diversified	-7.08%	24.48%	-0.73%
BlackRock MuniYield Quality Fund	N/A	N/A	N/A

Volatility and Risk

Compass Diversified has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, BlackRock MuniYield Quality Fund has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Summary

Compass Diversified beats BlackRock MuniYield Quality 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 BlackRock MuniYield Quality Fund

BlackRock MuniYield Quality Fund, Inc. is a close ended fixed income mutual fund launched by BlackRock, Inc. It is managed by BlackRock Advisors, LLC. The fund invests in fixed income markets. It invests in long-term municipal obligations the interest on which is exempt from federal income taxes. The fund also invests in short-term securities. BlackRock MuniYield Quality Fund, Inc. was formed on July 21, 1992 and is domiciled in United States.