Advertisement
CODI vs IIIN
Compass Diversified (CODI) vs Insteel Industries (IIIN) Earnings Recap: Insteel's Q2 Misses on Weather Challenges
Key Takeaways
- Insteel Industries (IIIN) reported Q2 fiscal 2026 net sales of $172.7 million, up 7.5% year-over-year, but diluted EPS fell to $0.27, missing analyst expectations of $0.64.
- Gross margins for IIIN narrowed to 9.6% from 15.3% due to severe winter weather and construction project delays.
- CODI approaches its Q1 2026 earnings on April 29 with trailing twelve-month (TTM) revenue of $1.87 billion but negative EPS of -$3.63.
- IIIN maintains stronger profitability with TTM EPS of $2.43 and ROE (return on equity) of 13.77%, compared to CODI's challenges.
- Both small-cap firms face industrial sector headwinds, but IIIN shows shipment recovery potential.
- Dividend yields differ sharply: CODI at 9.63% vs IIIN at 0.33%.
Earnings Context and Why This Comparison Matters
Compass Diversified (CODI), a holding company with diverse subsidiaries across industrials and consumer sectors, and Insteel Industries (IIIN), a manufacturer of steel wire reinforcing products for construction, offer insights into small-cap industrial resilience. Earnings reports reveal sector pressures like weather disruptions and economic cycles, making this comparison valuable for investors assessing growth stability versus diversified exposure in volatile markets.
Insteel Industries Focus
Insteel Industries released its Q2 fiscal 2026 results for the quarter ended March 31, 2026. Net sales rose 7.5% to $172.7 million from $160.7 million year-over-year, driven by higher average selling prices despite softer shipment volumes. However, gross profit declined to $16.5 million from $24.5 million, with margins contracting to 9.6% amid elevated raw material costs and severe winter weather delaying projects. Net earnings dropped to $5.2 million, or $0.27 diluted EPS (earnings per share), versus $10.2 million or $0.52 in the prior year. Management attributed the EPS miss to temporary weather impacts, expressing optimism for shipment recovery with strengthening nonresidential construction demand and seasonal upticks.
Compass Diversified Context
Compass Diversified's Q1 2026 earnings are scheduled for April 29, 2026. The company, operating on a calendar fiscal year, posted TTM revenue of $1.87 billion but grapples with negative EPS of -$3.63, reflecting one-time costs in recent quarters like Q4 2025's GAAP net loss. With a market cap of approximately $781 million and high debt-to-equity ratio of 357%, CODI relies on subsidiary performance across industrials. Its attractive 9.63% dividend yield appeals to income investors, though analysts eye organic growth amid macroeconomic risks.
Head-to-Head Earnings and Market Comparison
In earnings strength, IIIN outperforms with positive TTM EPS of $2.43 and 7.01% profit margins, contrasting CODI's -12.08% margins and negative earnings. Growth drivers favor IIIN's construction rebound potential over CODI's diversified but volatile subsidiaries. Risk exposure is lower for IIIN (debt/equity 0.99%, beta 0.82) versus CODI (357% debt/equity, beta 0.98). Market sentiment tilts toward IIIN's PE of 12.17 and $42 analyst target, while CODI trades at a discount with $12.75 target.
AI Screener
Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener identifies trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. Explore it today to enhance your investment strategy.
Tickeron AI Verdict
Tickeron AI favors IIIN with a 70% probability over the next quarter, citing superior earnings quality, positive TTM profitability, lower risk profile, and construction sector tailwinds despite the recent miss, versus CODI's earnings volatility and leverage concerns.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is CODI is a Hold and IIIN is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
CODI’s FA Score shows that 1 FA rating(s) are green whileIIIN’s FA Score has 0 green FA rating(s).
- CODI’s FA Score: 1 green, 4 red.
- IIIN’s FA Score: 0 green, 5 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
CODI’s TA Score shows that 4 TA indicator(s) are bullish while IIIN’s TA Score has 5 bullish TA indicator(s).
- CODI’s TA Score: 4 bullish, 3 bearish.
- IIIN’s TA Score: 5 bullish, 2 bearish.
Price Growth
CODI (@Industrial Conglomerates) experienced а -6.26% price change this week, while IIIN (@Metal Fabrication) price change was +3.46% for the same time period.
The average weekly price growth across all stocks in the @Industrial Conglomerates industry was -1.12%. For the same industry, the average monthly price growth was -0.40%, and the average quarterly price growth was +11.05%.
The average weekly price growth across all stocks in the @Metal Fabrication industry was +0.13%. For the same industry, the average monthly price growth was +3.04%, and the average quarterly price growth was +15.68%.
Reported Earning Dates
CODI is expected to report earnings on Aug 05, 2026.
IIIN is expected to report earnings on Jul 16, 2026.
Industries' Descriptions
@Industrial Conglomerates (-1.12% weekly)Industrial Conglomerates specialize in numerous types of products, most of which comprise industrial goods, while some also go towards meeting household needs. Honeywell (makes engineering services and aerospace systems), United Technologies Corporation(manufactures aircraft engines, aerospace systems, HVAC, elevators and escalators, fire and security, building systems, and industrial products, among others), 3M (over 60,000 products under several world-renowned brands, including adhesives, abrasives, laminates, passive fire protection, personal protective equipment, window films, paint protection films, dental and orthodontic products, electrical & electronic connecting and insulating materials, medical products, car-care products, electronic circuits, healthcare software and optical films).
@Metal Fabrication (+0.13% weekly)The industry is involved in value-added processes including creation of metal structures like machines and parts by cutting, bending and assembling, using various raw materials. A fabrication shop often bids on a project/job, and then builds the product if awarded the contract. Robotics and automation are making their way into the industry apparently to fill in skills gap[s19] . RBC Bearings Incorporated, Timken Company and Valmont Industries, Inc. are some of the largest metal fabrication companies in the U.S.
| CODI | IIIN | CODI / IIIN | |
| Capitalization | 801M | 553M | 145% |
| EBITDA | 30.4M | 73.8M | 41% |
| Gain YTD | 121.667 | -10.114 | -1,203% |
| P/E Ratio | N/A | 13.11 | - |
| Revenue | 1.85B | 690M | 268% |
| Total Cash | 60.7M | 15.1M | 402% |
| Total Debt | 1.86B | 3.04M | 61,164% |
CODI | IIIN | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 21 Undervalued | 44 Fair valued | |
PROFIT vs RISK RATING 1..100 | 100 | 100 | |
SMR RATING 1..100 | 100 | 66 | |
PRICE GROWTH RATING 1..100 | 38 | 60 | |
P/E GROWTH RATING 1..100 | 99 | 96 | |
SEASONALITY SCORE 1..100 | 45 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
CODI's Valuation (21) in the Investment Managers industry is in the same range as IIIN (44) in the Metal Fabrication industry. This means that CODI’s stock grew similarly to IIIN’s over the last 12 months.
CODI's Profit vs Risk Rating (100) in the Investment Managers industry is in the same range as IIIN (100) in the Metal Fabrication industry. This means that CODI’s stock grew similarly to IIIN’s over the last 12 months.
IIIN's SMR Rating (66) in the Metal Fabrication industry is somewhat better than the same rating for CODI (100) in the Investment Managers industry. This means that IIIN’s stock grew somewhat faster than CODI’s over the last 12 months.
CODI's Price Growth Rating (38) in the Investment Managers industry is in the same range as IIIN (60) in the Metal Fabrication industry. This means that CODI’s stock grew similarly to IIIN’s over the last 12 months.
IIIN's P/E Growth Rating (96) in the Metal Fabrication industry is in the same range as CODI (99) in the Investment Managers industry. This means that IIIN’s stock grew similarly to CODI’s over the last 12 months.
| CODI | IIIN | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 66% | 4 days ago 86% |
| Stochastic ODDS (%) | 4 days ago 68% | 4 days ago 72% |
| Momentum ODDS (%) | 4 days ago 73% | 4 days ago 70% |
| MACD ODDS (%) | N/A | 4 days ago 72% |
| TrendWeek ODDS (%) | 4 days ago 71% | 4 days ago 73% |
| TrendMonth ODDS (%) | 4 days ago 71% | 4 days ago 67% |
| Advances ODDS (%) | N/A | 5 days ago 70% |
| Declines ODDS (%) | 4 days ago 68% | 8 days ago 69% |
| BollingerBands ODDS (%) | 4 days ago 69% | 4 days ago 81% |
| Aroon ODDS (%) | 4 days ago 51% | N/A |
Advertisement
| 1 Day | |||
|---|---|---|---|
| MFs / NAME | Price $ | Chg $ | Chg % |
| LRSFX | 16.32 | -0.26 | -1.57% |
| Lord Abbett Small Cap Value F | |||
| WIAEX | 36.87 | -0.72 | -1.92% |
| Wasatch Small Cap Growth Institutional | |||
| PSCZX | 27.29 | -0.72 | -2.57% |
| PGIM Jennison Small Company Z | |||
| PAXGX | 17.04 | -0.50 | -2.85% |
| Impax Global Opportunities Investor | |||
| FNCMX | 327.04 | -14.24 | -4.17% |
| Fidelity Nasdaq Composite Index | |||
CODI and
Correlation & Price change
A.I.dvisor indicates that over the last year, CODI has been loosely correlated with IIIN. These tickers have moved in lockstep 55% of the time. This A.I.-generated data suggests there is some statistical probability that if CODI jumps, then IIIN could also see price increases.
| Ticker / NAME | Correlation To CODI | 1D Price Change % | ||
|---|---|---|---|---|
| CODI | 100% | -0.28% | ||
| IIIN - CODI | 55% Loosely correlated | -1.18% | ||
| PRLB - CODI | 53% Loosely correlated | -2.89% | ||
| MLI - CODI | 46% Loosely correlated | +0.43% | ||
| MDU - CODI | 46% Loosely correlated | +0.99% | ||
| NWPX - CODI | 46% Loosely correlated | -3.96% | ||
More | ||||
IIIN and
Correlation & Price change
A.I.dvisor indicates that over the last year, IIIN has been loosely correlated with CODI. These tickers have moved in lockstep 54% of the time. This A.I.-generated data suggests there is some statistical probability that if IIIN jumps, then CODI could also see price increases.
| Ticker / NAME | Correlation To IIIN | 1D Price Change % | ||
|---|---|---|---|---|
| IIIN | 100% | -1.18% | ||
| CODI - IIIN | 54% Loosely correlated | -0.28% | ||
| MTUS - IIIN | 51% Loosely correlated | -2.38% | ||
| STLD - IIIN | 50% Loosely correlated | -3.02% | ||
| NUE - IIIN | 47% Loosely correlated | -3.01% | ||
| MATW - IIIN | 45% Loosely correlated | -0.63% | ||
More | ||||