BOOM vs CODI

For growth investors, Compass Diversified (CODI) is the stronger pick with 4.

8% revenue growth year-over-year, versus -5. 1% for DMC Global Inc. (BOOM). Analysts rate DMC Global Inc. (BOOM) a "Buy" — based on 17 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

Over the past 5 years, Compass Diversified (CODI) delivered a total return of -35.

5%, compared to -86. 8% for DMC Global Inc. (BOOM). Over 10 years, the gap is even starker: CODI returned +53. 7% versus BOOM's -20. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Compass Diversified (CODI) is the lower-risk stock at 1.

09β versus DMC Global Inc. 's 1. 23β — meaning BOOM is approximately 13% more volatile than CODI relative to the S&P 500. On balance sheet safety, DMC Global Inc. (BOOM) carries a lower debt/equity ratio of 29% versus 3% for Compass Diversified — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Compass Diversified (CODI) is pulling ahead at 4.

8% versus -5. 1% for DMC Global Inc. (BOOM). On earnings-per-share growth, the picture is similar: DMC Global Inc. grew EPS 89. 0% year-over-year, compared to -1426. 1% for Compass Diversified. Over a 3-year CAGR, CODI leads at 2. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

DMC Global Inc.

(BOOM) is the more profitable company, earning -2. 9% net margin versus -12. 2% for Compass Diversified — meaning it keeps -2. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CODI leads at 2. 3% versus 0. 6% for BOOM. At the gross margin level — before operating expenses — CODI leads at 38. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

Analyst consensus price targets imply the most upside for CODI: 24.

7% to $15. 00.

In this comparison, CODI (4.

2% yield) pays a dividend. BOOM does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Compass Diversified (CODI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.

09), 4. 2% yield). Both have compounded well over 10 years (CODI: +53. 7%, BOOM: -20. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (BOOM (Energy) and CODI (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: BOOM is a small-cap quality compounder stock; CODI is a small-cap income-oriented stock. CODI pays a dividend while BOOM does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.