Comparing Kura Sushi USA (NASDAQ:KRUS) & Compass Group (OTCMKTS:CMPGY)

Compass Group (OTCMKTS:CMPGY) and Kura Sushi USA (NASDAQ:KRUS) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Compass Group and Kura Sushi USA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compass Group	0	0	2	2	3.50
Kura Sushi USA	1	5	4	0	2.30

Kura Sushi USA has a consensus target price of $76.91, indicating a potential upside of 15.12%. Given Kura Sushi USA’s higher possible upside, analysts plainly believe Kura Sushi USA is more favorable than Compass Group.

Earnings and Valuation

This table compares Compass Group and Kura Sushi USA”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Compass Group	$46.07 billion	1.10	$1.87 billion	N/A	N/A
Kura Sushi USA	$282.76 million	2.86	-$1.90 million	($0.33)	-202.45

Compass Group has higher revenue and earnings than Kura Sushi USA.

Institutional & Insider Ownership

0.0% of Compass Group shares are owned by institutional investors. Comparatively, 65.5% of Kura Sushi USA shares are owned by institutional investors. 0.0% of Compass Group shares are owned by insiders. Comparatively, 2.3% of Kura Sushi USA shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Compass Group and Kura Sushi USA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Compass Group	N/A	N/A	N/A
Kura Sushi USA	-1.37%	-0.63%	-0.34%

Risk and Volatility

Compass Group has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, Kura Sushi USA has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500.

Summary

Compass Group beats Kura Sushi USA on 7 of the 13 factors compared between the two stocks.

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.

About Kura Sushi USA

Kura Sushi USA, Inc. operates technology-enabled Japanese restaurants in the United States. The company was formerly known as Kula Sushi USA, Inc. and changed its name to Kura Sushi USA, Inc. in October 2017. The company was founded in 2008 and is headquartered in Irvine, California. Kura Sushi USA, Inc. is a subsidiary of Kura Sushi, Inc.