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.
Yum! Brands (NYSE:YUM) and Domino's Pizza (NYSE:DPZ) are both large-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, community ranking, institutional ownership, analyst recommendations and media sentiment.
Yum! Brands pays an annual dividend of $2.68 per share and has a dividend yield of 1.9%. Domino's Pizza pays an annual dividend of $6.04 per share and has a dividend yield of 1.2%. Yum! Brands pays out 47.5% of its earnings in the form of a dividend. Domino's Pizza pays out 39.4% 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 raised its dividend for 7 consecutive years and Domino's Pizza has raised its dividend for 12 consecutive 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.
Yum! Brands has a net margin of 22.92% compared to Yum! Brands' net margin of 11.90%. Yum! Brands' return on equity of -13.19% beat Domino's Pizza's return on equity.
82.4% of Yum! Brands shares are owned by institutional investors. Comparatively, 94.6% of Domino's Pizza shares are owned by institutional investors. 0.3% of Yum! Brands shares are owned by insiders. Comparatively, 0.8% of Domino's Pizza shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Yum! Brands presently has a consensus target price of $143.80, suggesting a potential upside of 2.74%. Domino's Pizza has a consensus target price of $518.46, suggesting a potential upside of 0.96%. Given Domino's Pizza's higher possible upside, analysts clearly 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.
In the previous week, Yum! Brands had 1 more articles in the media than Domino's Pizza. MarketBeat recorded 12 mentions for Yum! Brands and 11 mentions for Domino's Pizza. Yum! Brands' average media sentiment score of 1.20 beat Domino's Pizza's score of 1.12 indicating that Domino's Pizza is being referred to more favorably in the news media.
Yum! Brands has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Domino's Pizza has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.
Summary
Domino's Pizza beats Yum! Brands on 11 of the 21 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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