Compass vs COMPASS Pathways Which Outperforms?

Compass Pathways is a mental health care company that focuses on developing innovative therapies for patients suffering from treatment-resistant depression. The company's stocks, trading under the symbol COMP, have garnered interest from investors looking to capitalize on the growing demand for mental health treatments. However, it's important to differentiate between Compass Pathways' stocks and the traditional investment tool known as a compass. While both may provide guidance in their own way, Compass Pathways stocks offer a unique opportunity to support mental health innovation and potentially generate significant returns for investors.

Compass or COMPASS Pathways?

When comparing Compass and COMPASS Pathways, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Compass and COMPASS Pathways.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Compass has a dividend yield of -%, while COMPASS Pathways has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Compass reports a 5-year dividend growth of 0.00% year and a payout ratio of -14.93%. On the other hand, COMPASS Pathways reports a 5-year dividend growth of 0.00% year and a payout ratio of -0.96%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Compass P/E ratio at -17.41 and COMPASS Pathways's P/E ratio at -2.51. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Compass P/B ratio is 8.04 while COMPASS Pathways's P/B ratio is 1.88.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Compass has seen a 5-year revenue growth of 3.20%, while COMPASS Pathways's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Compass's ROE at -49.85% and COMPASS Pathways's ROE at -63.97%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.59 for Compass and $5.17 for COMPASS Pathways. Over the past year, Compass's prices ranged from $1.88 to $7.01, with a yearly change of 272.87%. COMPASS Pathways's prices fluctuated between $4.05 and $12.75, with a yearly change of 214.81%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.