IEP vs CODI

For growth investors, Compass Diversified (CODI) is the stronger pick with 5.

8% revenue growth year-over-year, versus -14. 7% for Icahn Enterprises L. P. (IEP). Compass Diversified (CODI) offers the better valuation at 50. 6x trailing P/E (145. 4x forward), making it the more compelling value choice. Analysts rate Icahn Enterprises L. P. (IEP) a "Buy" — based on 2 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, Icahn Enterprises L.

P. is actually cheaper at 18. 9x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Compass Diversified (CODI) delivered a total return of -37.

1%, compared to -40. 3% for Icahn Enterprises L. P. (IEP). Over 10 years, the gap is even starker: CODI returned +52. 0% versus IEP's +21. 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), Icahn Enterprises L.

P. (IEP) is the lower-risk stock at 0. 60β versus Compass Diversified's 1. 09β — meaning CODI is approximately 81% more volatile than IEP relative to the S&P 500. On balance sheet safety, Icahn Enterprises L. P. (IEP) carries a lower debt/equity ratio of 189% versus 7% for Compass Diversified — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Compass Diversified (CODI) is pulling ahead at 5.

8% versus -14. 7% for Icahn Enterprises L. P. (IEP). On earnings-per-share growth, the picture is similar: Icahn Enterprises L. P. grew EPS 46. 4% year-over-year, compared to -90. 7% for Compass Diversified. Over a 3-year CAGR, CODI leads at 1. 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.

Icahn Enterprises L.

P. (IEP) is the more profitable company, earning -4. 3% net margin versus -11. 7% for Compass Diversified — meaning it keeps -4. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: IEP leads at 1. 5% versus -0. 8% for CODI. At the gross margin level — before operating expenses — CODI leads at 42. 0%, 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, Icahn Enterprises L.

P. (IEP) trades at 18. 9x forward P/E versus 145. 4x for Compass Diversified — 126. 4x cheaper on a one-year earnings basis.

All stocks in this comparison pay dividends.

Compass Diversified (CODI) offers the highest yield at 14. 2%, versus 10. 1% for Icahn Enterprises L. P. (IEP).

For long-horizon retirement investors, Icahn Enterprises L.

P. (IEP) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 60), 10. 1% yield). Both have compounded well over 10 years (IEP: +21. 4%, CODI: +52. 0%), 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.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

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.