Understand the business beneath the ticker.
Useful peers share business economics. Our classification approach is designed around how an investor investigates and covers a company.
Explore the demoStart with how the business earns.
An industry label is a starting point, not a complete description. Owned restaurants and franchise operations can have different capital requirements, cost structures and sensitivities. A diversified company can participate in both. Understanding those differences helps you decide which comparisons are worth making.
Give divisions their own context.
Our approach keeps the company’s reported division names and distinguishes the kinds of activity they represent. Company-level and division-level context serve different questions. Examine a specific exposure without treating the entire group as if it were a focused operator.
Make the classification explainable.
The classification method uses defined groups, a primary activity and additional memberships where relevant. The depth should follow the business rather than a fixed number of levels. Assignments need definitions and review as companies change; the original SEC industry code remains part of the record.
Build a peer set you can defend.
Start from the activity you want to compare, then consider materiality, geography, business model and reported definitions. Classification helps you find candidates. It does not make every candidate comparable or replace your judgement. Check the available classification and division detail for each company before using a peer set.