Remitly Global (NASDAQ:RELY – Get Free Report) and Compass Diversified (NYSE:CODI – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, earnings, analyst recommendations, risk and profitability.
Earnings & Valuation
This table compares Remitly Global and Compass Diversified”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Remitly Global | $1.64 billion | 2.75 | $67.93 million | $1.39 | 15.31 |
| Compass Diversified | $1.87 billion | 0.46 | -$226.41 million | ($2.17) | -5.24 |
Risk and Volatility
Remitly Global has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, Compass Diversified has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Remitly Global and Compass Diversified, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Remitly Global | 0 | 1 | 10 | 2 | 3.08 |
| Compass Diversified | 1 | 2 | 3 | 0 | 2.33 |
Remitly Global presently has a consensus target price of $27.78, suggesting a potential upside of 30.53%. Compass Diversified has a consensus target price of $16.50, suggesting a potential upside of 45.12%. Given Compass Diversified’s higher probable upside, analysts plainly believe Compass Diversified is more favorable than Remitly Global.
Institutional & Insider Ownership
74.3% of Remitly Global shares are owned by institutional investors. Comparatively, 72.7% of Compass Diversified shares are owned by institutional investors. 6.5% of Remitly Global shares are owned by insiders. Comparatively, 1.6% of Compass Diversified shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Remitly Global and Compass Diversified’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Remitly Global | 16.85% | 33.33% | 21.92% |
| Compass Diversified | -5.38% | -10.36% | -0.10% |
Summary
Remitly Global beats Compass Diversified on 12 of the 15 factors compared between the two stocks.
About Remitly Global
Remitly Global, Inc. provides digital financial services for immigrants and their families. It primarily offers cross-border remittance services in approximately 170 countries. The company was incorporated in 2011 and is headquartered in Seattle, Washington.
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.
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