Compass Diversified (NYSE:CODI) vs. Nayax (NASDAQ:NYAX) Head-To-Head Survey

Nayax (NASDAQ:NYAX) and Compass Diversified (NYSE:CODI) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Earnings & Valuation

This table compares Nayax and Compass Diversified”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nayax	$400.43 million	4.77	$35.52 million	$0.21	248.64
Compass Diversified	$1.87 billion	0.47	-$226.41 million	($0.90)	-13.10

Nayax has higher earnings, but lower revenue than Compass Diversified. Compass Diversified is trading at a lower price-to-earnings ratio than Nayax, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

34.9% of Nayax shares are owned by institutional investors. Comparatively, 72.7% of Compass Diversified shares are owned by institutional investors. 1.6% of Compass Diversified shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Nayax and Compass Diversified, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nayax	1	3	3	1	2.50
Compass Diversified	1	2	4	0	2.43

Nayax currently has a consensus target price of $72.66, suggesting a potential upside of 39.16%. Compass Diversified has a consensus target price of $17.00, suggesting a potential upside of 44.18%. Given Compass Diversified’s higher possible upside, analysts plainly believe Compass Diversified is more favorable than Nayax.

Profitability

This table compares Nayax and Compass Diversified’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nayax	1.74%	10.45%	2.92%
Compass Diversified	-0.05%	72.69%	2.69%

Risk & Volatility

Nayax has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, Compass Diversified has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Summary

Nayax beats Compass Diversified on 8 of the 15 factors compared between the two stocks.

About Nayax

Nayax Ltd. is a financial technology and commerce platform company focused on unattended and self-service retail. Its offerings combine cashless payment processing with business management and consumer-engagement tools. The company provides payment devices and software that support cashless transactions, remote monitoring, sales reporting and loyalty programs. Its solutions serve operators in markets such as vending, self-service laundries, micro markets and other unattended retail settings. Founded in 2005 and headquartered in Israel, Nayax serves merchants and operators in markets around the world.

About Compass Diversified

Compass Diversified (NYSE: CODI) is a holding company that acquires and manages established middle-market businesses. It provides its subsidiary companies with capital and strategic support while allowing them to operate as independent businesses. The company’s portfolio has included businesses in branded consumer products and niche industrial markets. Their products and services span areas such as outdoor and tactical gear, specialty components, and manufacturing. Founded in 2005, Compass Diversified is based in the United States and its portfolio companies serve customers in domestic and international markets.