Compass Diversified Holdings (CODI) vs Otter Tail Corporation (OTTR)

Compass Diversified Holdings and Otter Tail Corporation are both Conglomerates companies. Otter Tail Corporation is the larger, with a market value of $3.7B against $821.6M — 4.5× the size. Compass Diversified Holdings has negative trailing earnings, so its P/E is not meaningful; Otter Tail Corporation trades at 18.8×. Otter Tail Corporation grew revenue faster over the last twelve months: 0.27% against −4.83%. Otter Tail Corporation has the higher net margin (14.8% vs −5.29%) and the higher return on invested capital (5.15% vs 1.84%). Only Otter Tail Corporation pays a dividend (2.58%). Across the 21 metrics below, Otter Tail Corporation leads on 15 and Compass Diversified Holdings on 6.

Valuation

Metric CODI OTTR Conglomerates median
P/E n/m 18.77 17.97
P/S 0.46 2.79 0.85
P/B 6.31 1.96 1.50
Price to free cash flow 10.25 n/m 12.94
EV/EBITDA 11.30 13.11 11.24
EV/Sales 1.29 3.44 1.29
Earnings yield (20.00%) 5.33% 0.33%
Free cash flow yield 9.75% (1.91%) (0.73%)

Profitability

Metric CODI OTTR Conglomerates median
Gross margin 44.59% 56.91% 33.55%
Operating margin 3.46% 17.13% 2.86%
Net margin (5.29%) 14.83% 0.49%
Free cash flow margin 4.44% (5.32%) (0.47%)
Return on equity (304.87%) 10.68% 0.27%
Return on assets (3.15%) 4.84% 0.00%
Return on invested capital 1.84% 5.15% 1.29%

Growth

Metric CODI OTTR Conglomerates median
Revenue growth (TTM) (4.83%) 0.27% 8.17%
EPS growth (last fiscal year) (214.91%) (8.65%) (8.46%)
Revenue growth, 5-year CAGR 5.29% 7.94% 6.01%
Net income growth, 5-year CAGR 0.00% 23.55% 0.00%

Health

Metric CODI OTTR Conglomerates median
Debt to equity 2.61 0.67 0.51
Current ratio 2.26 1.71 1.77
Net debt to EBITDA 11.78 1.43 1.29

Dividend

Metric CODI OTTR Conglomerates median
Dividend yield 0.00% 2.58% 3.05%
Payout ratio — 0.49 0.30

Size

Metric CODI OTTR Conglomerates median
Market cap 821.58m 3.71b 470.57m

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