DPZ vs. YUM, DRI, TXRH, WEN, EAT, CAKE, BLMN, PZZA, JACK, and CBRL
Should you be buying Domino's Pizza stock or one of its competitors? The main competitors of Domino's Pizza include Yum! Brands (YUM), Darden Restaurants (DRI), Texas Roadhouse (TXRH), Wendy's (WEN), Brinker International (EAT), Cheesecake Factory (CAKE), Bloomin' Brands (BLMN), Papa John's International (PZZA), Jack in the Box (JACK), and Cracker Barrel Old Country Store (CBRL). These companies are all part of the "restaurants" industry.
Domino's Pizza (NYSE:DPZ) and Yum! Brands (NYSE:YUM) are both large-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation, institutional ownership, community ranking and media sentiment.
Yum! Brands has a net margin of 22.92% compared to Domino's Pizza's net margin of 11.90%. Domino's Pizza's return on equity of -13.19% beat Yum! Brands' return on equity.
In the previous week, Domino's Pizza and Domino's Pizza both had 11 articles in the media. Domino's Pizza's average media sentiment score of 1.19 beat Yum! Brands' score of 1.17 indicating that Domino's Pizza is being referred to more favorably in the media.
94.6% of Domino's Pizza shares are owned by institutional investors. Comparatively, 82.4% of Yum! Brands shares are owned by institutional investors. 0.8% of Domino's Pizza shares are owned by insiders. Comparatively, 0.3% of Yum! Brands shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Domino's Pizza currently has a consensus price target of $518.46, indicating a potential upside of 0.96%. Yum! Brands has a consensus price target of $143.80, indicating a potential upside of 2.74%. Given Yum! Brands' higher possible upside, analysts plainly believe Yum! Brands is more favorable than Domino's Pizza.
Yum! Brands received 176 more outperform votes than Domino's Pizza when rated by MarketBeat users. Likewise, 65.26% of users gave Yum! Brands an outperform vote while only 62.23% of users gave Domino's Pizza an outperform vote.
Domino's Pizza has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Yum! Brands has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.
Domino's Pizza pays an annual dividend of $6.04 per share and has a dividend yield of 1.2%. Yum! Brands pays an annual dividend of $2.68 per share and has a dividend yield of 1.9%. Domino's Pizza pays out 39.4% of its earnings in the form of a dividend. Yum! Brands pays out 47.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Yum! Brands has higher revenue and earnings than Domino's Pizza. Yum! Brands is trading at a lower price-to-earnings ratio than Domino's Pizza, indicating that it is currently the more affordable of the two stocks.
Summary
Domino's Pizza beats Yum! Brands on 10 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding DPZ and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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