Compliment... or not?

[Gurthang]

At Bilbo's party, he says:

I don't know half of you half as well as I should like; and I like less than half of you half as well as you deserve.
~ FotR: Chapter 1

Now, at first glance, you don't really know what to get from this line. It's just plain fun to read or say out loud, and can be left at that if you like. But if you try to look closer, to see what it means, it seems to be a compliment; at least the first half is. But by looking even closer, it almost seems like it isn't a compliment.

The second breath of the sentence can be taken in two ways. Bilbo could be saying that most of the Hobbits he knows, he likes the correct amount or is being generous in how much the likes them. Or he is saying that there are some that he doesn't like as much as he should.

So, to put it graphically: M = majority, m = minority

Bilbo likes M >= what's fair
OR
Bilbo likes m < what's fair


OR (if you want to stretch your brain.)
Bilbo likes M >= what's fair > Bilbo likes m

So, what do you think it is: Compliment, not a compliment, or both at the same time?