Compass vs Endeavour Which Is a Smarter Choice?

Compass Group plc and Endeavour Silver Corp are two prominent players in the stock market, each offering unique opportunities and risks for investors. Compass Group is a global food service and support services company, while Endeavour Silver is a mid-tier precious metals mining company. Both stocks have shown strong performance in recent years, but they cater to different sectors and have differing levels of volatility. Understanding the key differences between these two stocks is essential for making informed investment decisions.

Compass or Endeavour?

When comparing Compass and Endeavour, 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 Endeavour.

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 Endeavour has a dividend yield of 8.8%. 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, Endeavour reports a 5-year dividend growth of 0.00% year and a payout ratio of 76.17%.

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 -17.34 and Endeavour's P/E ratio at 9.46. 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 8.00 while Endeavour's P/B ratio is 1.93.

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 Endeavour's is 0.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Compass's ROE at -49.85% and Endeavour's ROE at 20.02%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.72 for Compass and $2.58 for Endeavour. Over the past year, Compass's prices ranged from $2.78 to $7.69, with a yearly change of 176.62%. Endeavour's prices fluctuated between $2.51 and $3.97, with a yearly change of 58.17%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.