Compass Diversified Holdings (CODI) vs Tejon Ranch Co (TRC)

Compass Diversified Holdings and Tejon Ranch Co are both Conglomerates companies. Compass Diversified Holdings is the larger, with a market value of $799.0M against $447.5M — 1.8× the size. Compass Diversified Holdings has negative trailing earnings, so its P/E is not meaningful; Tejon Ranch Co trades at 72.3×. Tejon Ranch Co grew revenue faster over the last twelve months: 25.5% against −4.83%. Tejon Ranch Co has the higher net margin (10.6% vs −5.29%) and the lower return on invested capital (−0.06% vs 1.84%). Across the 19 metrics below, Tejon Ranch Co leads on 11 and Compass Diversified Holdings on 8.

Valuation

Metric CODI TRC Conglomerates median
P/E n/m 72.34 16.16
P/S 0.42 7.75 0.80
P/B 5.82 0.89 1.50
Price to free cash flow 9.46 n/m 12.10
EV/EBITDA 10.99 84.42 11.13
EV/Sales 1.25 9.21 1.25
Earnings yield (21.68%) 1.38% 0.37%
Free cash flow yield 10.57% (4.18%) (0.75%)

Profitability

Metric CODI TRC Conglomerates median
Gross margin 44.59% 16.08% 33.55%
Operating margin 3.46% (0.91%) 2.86%
Net margin (5.29%) 10.62% 0.49%
Free cash flow margin 4.44% (42.78%) (0.47%)
Return on equity (304.87%) 1.23% 0.27%
Return on assets (3.15%) 0.96% 0.00%
Return on invested capital 1.84% (0.06%) 1.29%

Growth

Metric CODI TRC Conglomerates median
Revenue growth (TTM) (4.83%) 25.45% 8.17%
EPS growth (last fiscal year) (214.91%) (97.40%) (8.46%)
Revenue growth, 5-year CAGR 5.29% 5.56% 6.01%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CODI TRC Conglomerates median
Debt to equity 2.61 0.19 0.51
Current ratio 2.26 2.92 1.77
Net debt to EBITDA 11.78 (32.76) 1.29

Dividend

Metric CODI TRC Conglomerates median
Dividend yield 0.00% — 3.06%
Payout ratio — — 0.30

Size

Metric CODI TRC Conglomerates median
Market cap 799.01m 447.48m 425.00m

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