Bonk (NASDAQ:BNKK – Get Free Report) and Compass Diversified (NYSE:CODI – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Analyst Recommendations
This is a summary of recent ratings and price targets for Bonk and Compass Diversified, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bonk | 1 | 0 | 0 | 0 | 1.00 |
| Compass Diversified | 1 | 2 | 4 | 0 | 2.43 |
Compass Diversified has a consensus target price of $17.00, indicating a potential upside of 63.23%. Given Compass Diversified’s stronger consensus rating and higher possible upside, analysts clearly believe Compass Diversified is more favorable than Bonk.
Earnings and Valuation
This table compares Bonk and Compass Diversified”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bonk | $2.12 million | 4.06 | -$68.19 million | ($3.82) | -0.28 |
| Compass Diversified | $1.79 billion | 0.44 | -$226.41 million | ($2.17) | -4.80 |
Bonk has higher earnings, but lower revenue than Compass Diversified. Compass Diversified is trading at a lower price-to-earnings ratio than Bonk, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Bonk and Compass Diversified’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bonk | -952.21% | -137.47% | -122.67% |
| Compass Diversified | -5.38% | -10.36% | -0.10% |
Institutional & Insider Ownership
12.6% of Bonk shares are held by institutional investors. Comparatively, 72.7% of Compass Diversified shares are held by institutional investors. 51.6% of Bonk shares are held by company insiders. Comparatively, 1.6% of Compass Diversified shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
Bonk has a beta of 1.91, meaning that its share price is 91% more volatile than the S&P 500. Comparatively, Compass Diversified has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.
Summary
Compass Diversified beats Bonk on 9 of the 14 factors compared between the two stocks.
About Bonk
Safety Shot, Inc., a wellness and functional beverage company, engages in the research and development of over-the-counter products and intellectual property. Its products pipeline includes Photocil to address psoriasis and vitiligo; JW-700 to treat hair loss; JW-500 for women’s sexual wellness; NoStingz, a jellyfish sting prevention sunscreen; and JW-110 for the treatment of atopic dermatitis/eczema. The company primarily sell its products through third-party physical retail stores and partners. The company was formerly known as Jupiter Wellness, Inc. and changed its name to Safety Shot, Inc. in September 2023. The company was incorporated in 2018 and is headquartered in Jupiter, Florida.
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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