Compass Diversified Holdings (CODI) vs Deluxe Corporation (DLX)

Compass Diversified Holdings and Deluxe Corporation are both Conglomerates companies. Deluxe Corporation is the larger, with a market value of $1.1B against $846.4M — 1.3× the size. Compass Diversified Holdings has negative trailing earnings, so its P/E is not meaningful; Deluxe Corporation trades at 10.8×. Deluxe Corporation grew revenue faster over the last twelve months: 0.28% against −4.83%. Deluxe Corporation has the higher net margin (4.76% vs −5.29%) and the higher return on invested capital (7.47% vs 1.84%). Both pay a dividend; Deluxe Corporation yields more (5.88% vs 4.54%). Across the 22 metrics below, Deluxe Corporation leads on 19 and Compass Diversified Holdings on 3.

Valuation

Metric CODI DLX Conglomerates median
P/E n/m 10.81 17.47
P/S 0.47 0.53 0.88
P/B 6.54 1.57 1.40
Price to free cash flow 10.63 5.33 12.58
EV/EBITDA 11.45 5.79 11.36
EV/Sales 1.31 1.19 1.37
Earnings yield (19.29%) 9.25% 0.65%
Free cash flow yield 9.41% 18.76% 0.00%

Profitability

Metric CODI DLX Conglomerates median
Gross margin 44.59% 52.51% 33.55%
Operating margin 3.46% 11.88% 3.36%
Net margin (5.29%) 4.76% 0.97%
Free cash flow margin 4.44% 9.90% (0.94%)
Return on equity (304.87%) 14.94% 0.75%
Return on assets (3.15%) 3.95% 0.10%
Return on invested capital 1.84% 7.47% 0.73%

Growth

Metric CODI DLX Conglomerates median
Revenue growth (TTM) (4.83%) 0.28% 8.17%
EPS growth (last fiscal year) (214.91%) 58.47% —
Revenue growth, 5-year CAGR 5.29% 3.56% 6.01%
Net income growth, 5-year CAGR 0.00% 73.71% 0.00%

Health

Metric CODI DLX Conglomerates median
Debt to equity 2.61 2.02 0.48
Current ratio 2.26 1.20 1.79
Net debt to EBITDA 11.78 3.33 1.36

Dividend

Metric CODI DLX Conglomerates median
Dividend yield 4.54% 5.88% 2.53%
Payout ratio — 0.98 0.00

Size

Metric CODI DLX Conglomerates median
Market cap 846.40m 1.12b 519.65m

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