Bloomin' Brands (NASDAQ:BLMN) and Domino's Pizza (NYSE:DPZ) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, dividends, valuation and risk.
Dividends
Bloomin' Brands pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. Domino's Pizza pays an annual dividend of $3.12 per share and has a dividend yield of 0.9%. Bloomin' Brands pays out 13.0% of its earnings in the form of a dividend. Domino's Pizza pays out 32.6% 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. Domino's Pizza has increased its dividend for 1 consecutive years. Domino's Pizza is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
95.6% of Bloomin' Brands shares are held by institutional investors. Comparatively, 88.8% of Domino's Pizza shares are held by institutional investors. 4.4% of Bloomin' Brands shares are held by insiders. Comparatively, 1.7% of Domino's Pizza shares are held 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.
Earnings and Valuation
This table compares Bloomin' Brands and Domino's Pizza's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Bloomin' Brands | $4.14 billion | 0.53 | $130.57 million | $1.54 | 16.13 |
Domino's Pizza | $3.62 billion | 3.77 | $400.71 million | $9.57 | 36.21 |
Domino's Pizza has lower revenue, but higher earnings than Bloomin' Brands. Bloomin' 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.
Analyst Ratings
This is a summary of current ratings and recommmendations for Bloomin' Brands and Domino's Pizza, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Bloomin' Brands | 1 | 5 | 8 | 1 | 2.60 |
Domino's Pizza | 0 | 9 | 21 | 0 | 2.70 |
Bloomin' Brands currently has a consensus price target of $20.7333, indicating a potential downside of 16.53%. Domino's Pizza has a consensus price target of $420.00, indicating a potential upside of 21.21%. Given Domino's Pizza's stronger consensus rating and higher possible upside, analysts clearly believe Domino's Pizza is more favorable than Bloomin' Brands.
Profitability
This table compares Bloomin' Brands and Domino's Pizza's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Bloomin' Brands | -3.45% | -39.30% | -0.89% |
Domino's Pizza | 11.98% | -14.11% | 31.41% |
Volatility and Risk
Bloomin' Brands has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500. Comparatively, Domino's Pizza has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500.
Summary
Domino's Pizza beats Bloomin' Brands on 12 of the 18 factors compared between the two stocks.