CODI vs CGBD

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

8% revenue growth year-over-year, versus -2. 9% for Carlyle Secured Lending, Inc. (CGBD). Carlyle Secured Lending, Inc. (CGBD) offers the better valuation at 7. 5x trailing P/E (8. 2x forward), making it the more compelling value choice. Analysts rate Compass Diversified (CODI) a "Hold" — based on 14 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.

On forward P/E, Carlyle Secured Lending, Inc.

is actually cheaper at 8. 2x.

Over the past 5 years, Carlyle Secured Lending, Inc.

(CGBD) delivered a total return of +51. 3%, compared to -37. 0% for Compass Diversified (CODI). Over 10 years, the gap is even starker: CODI returned +52. 1% versus CGBD's +48. 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), Carlyle Secured Lending, Inc.

(CGBD) is the lower-risk stock at 0. 61β versus Compass Diversified's 1. 09β — meaning CODI is approximately 77% more volatile than CGBD relative to the S&P 500. On balance sheet safety, Carlyle Secured Lending, Inc. (CGBD) carries a lower debt/equity ratio of 107% 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 -2. 9% for Carlyle Secured Lending, Inc. (CGBD). On earnings-per-share growth, the picture is similar: Carlyle Secured Lending, Inc. grew EPS -3. 7% year-over-year, compared to -1426. 1% for Compass Diversified. 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.

Carlyle Secured Lending, Inc.

(CGBD) is the more profitable company, earning 53. 0% net margin versus -12. 2% for Compass Diversified — meaning it keeps 53. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CGBD leads at 54. 7% versus 2. 3% for CODI. At the gross margin level — before operating expenses — CGBD leads at 59. 2%, 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.

On forward earnings alone, Carlyle Secured Lending, Inc.

(CGBD) trades at 8. 2x forward P/E versus 145. 3x for Compass Diversified — 137. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CODI: 29. 1% to $15. 00.

All stocks in this comparison pay dividends.

Compass Diversified (CODI) offers the highest yield at 4. 3%, versus 0. 2% for Carlyle Secured Lending, Inc. (CGBD).

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. 3% yield). Both have compounded well over 10 years (CODI: +52. 1%, CGBD: +48. 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 (CODI (Industrials) and CGBD (Financial Services)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: CODI is a small-cap income-oriented stock; CGBD is a small-cap deep-value stock. CODI pays a dividend while CGBD 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.