Compass Diversified (NYSE:CODI) vs. Brookfield Wealth Solutions (NYSE:BNT) Head to Head Survey

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

Valuation & Earnings

This table compares Compass Diversified and Brookfield Wealth Solutions”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Compass Diversified	$1.87 billion	0.45	-$226.41 million	($2.17)	-5.19
Brookfield Wealth Solutions	$11.63 billion	1.07	$766.00 million	$0.26	141.81

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

Institutional and Insider Ownership

72.7% of Compass Diversified shares are owned by institutional investors. Comparatively, 20.3% of Brookfield Wealth Solutions shares are owned by institutional investors. 1.6% of Compass Diversified shares are owned by company insiders. Comparatively, 1.0% of Brookfield Wealth Solutions shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Compass Diversified and Brookfield Wealth Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Compass Diversified	-5.38%	-10.36%	-0.10%
Brookfield Wealth Solutions	0.15%	0.10%	0.01%

Risk & Volatility

Compass Diversified has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Brookfield Wealth Solutions has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Compass Diversified and Brookfield Wealth Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compass Diversified	1	2	3	0	2.33
Brookfield Wealth Solutions	0	1	0	0	2.00

Compass Diversified currently has a consensus price target of $16.50, indicating a potential upside of 46.61%. Given Compass Diversified’s stronger consensus rating and higher probable upside, analysts plainly believe Compass Diversified is more favorable than Brookfield Wealth Solutions.

Summary

Brookfield Wealth Solutions beats Compass Diversified on 9 of the 14 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 Brookfield Wealth Solutions

Brookfield Wealth Solutions is focused on securing the financial futures of individuals and institutions through a range of retirement services, wealth protection products and tailored capital solutions. Through our operating subsidiaries, we offer a broad range of insurance products and services, including annuities, personal and commercial property and casualty insurance and life insurance.The company was incorporated in 2020 and is headquartered in Pembroke, Bermuda.