El Pollo Loco (NASDAQ:LOCO – Get Free Report) and Compass Group (OTCMKTS:CMPGY – Get Free Report) are both retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.
Profitability
This table compares El Pollo Loco and Compass Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| El Pollo Loco | 5.39% | 10.15% | 4.62% |
| Compass Group | N/A | N/A | N/A |
Earnings & Valuation
This table compares El Pollo Loco and Compass Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| El Pollo Loco | $473.01 million | 0.68 | $25.68 million | $0.88 | 12.19 |
| Compass Group | $46.07 billion | 1.18 | $1.87 billion | N/A | N/A |
Compass Group has higher revenue and earnings than El Pollo Loco.
Analyst Recommendations
This is a breakdown of current ratings and target prices for El Pollo Loco and Compass Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| El Pollo Loco | 0 | 2 | 2 | 1 | 2.80 |
| Compass Group | 0 | 0 | 2 | 2 | 3.50 |
El Pollo Loco presently has a consensus price target of $15.75, indicating a potential upside of 46.78%. Given El Pollo Loco’s higher possible upside, equities research analysts clearly believe El Pollo Loco is more favorable than Compass Group.
Volatility and Risk
El Pollo Loco has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Compass Group has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.
Insider & Institutional Ownership
81.3% of El Pollo Loco shares are owned by institutional investors. Comparatively, 0.0% of Compass Group shares are owned by institutional investors. 3.1% of El Pollo Loco shares are owned by insiders. Comparatively, 0.0% of Compass Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
El Pollo Loco beats Compass Group on 7 of the 12 factors compared between the two stocks.
About El Pollo Loco
El Pollo Loco Holdings, Inc., through its subsidiary, El Pollo Loco, Inc., develops, franchises, licenses, and operates quick-service restaurants under the El Pollo Loco name. It operates and franchises restaurants located in California, Nevada, Arizona, Texas, Colorado, Utah, and Louisiana. It also licenses its brand to restaurants in the Philippines. The company was formerly known as Chicken Acquisition Corp. and changed its name to El Pollo Loco Holdings, Inc. in April 2014. El Pollo Loco Holdings, Inc. was founded in 1975 and is headquartered in Costa Mesa, California.
About Compass Group
Compass Group PLC operates as a food and support services company in North America, Europe, and internationally. The company offers support services, such as cleaning in hospitals; reception services at corporate headquarters; managing remote camps; grounds and facilities services at schools and universities; and others. It serves business and industry; healthcare and senior living market; education; sports and leisure; and defense, offshore, and remote sectors. Compass Group PLC was founded in 1941 and is based in Chertsey, the United Kingdom.
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