Domino's Pizza (DPZ) Competitors

Domino's Pizza (NASDAQ:DPZ) and Yum! Brands (NYSE:YUM) are both large-cap retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, media sentiment, analyst recommendations, risk, profitability and earnings.

Does the media favor DPZ or YUM?

In the previous week, Domino's Pizza had 27 more articles in the media than Yum! Brands. MarketBeat recorded 57 mentions for Domino's Pizza and 30 mentions for Yum! Brands. Yum! Brands' average media sentiment score of 0.91 beat Domino's Pizza's score of 0.65 indicating that Yum! Brands is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Domino's Pizza	22 Very Positive mention(s)	7 Positive mention(s)	20 Neutral mention(s)	0 Negative mention(s)	2 Very Negative mention(s)	Positive
Yum! Brands	22 Very Positive mention(s)	1 Positive mention(s)	6 Neutral mention(s)	0 Negative mention(s)	1 Very Negative mention(s)	Positive

Is DPZ or YUM a better dividend stock?

Domino's Pizza pays an annual dividend of $6.96 per share and has a dividend yield of 1.5%. Yum! Brands pays an annual dividend of $2.84 per share and has a dividend yield of 1.9%. Domino's Pizza pays out 39.9% of its earnings in the form of a dividend. Yum! Brands pays out 56.6% 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 raised its dividend for 12 consecutive years and Yum! Brands has raised its dividend for 8 consecutive years.

Which has more risk and volatility, DPZ or YUM?

Domino's Pizza has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Yum! Brands has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.

Which has better earnings and valuation, DPZ or YUM?

Yum! Brands has higher revenue and earnings than Domino's Pizza. Domino's Pizza is trading at a lower price-to-earnings ratio than Yum! Brands, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Domino's Pizza	$4.71B	3.48	$584.17M	$17.44	27.42
Yum! Brands	$7.55B	5.44	$1.49B	$5.02	29.45

Is DPZ or YUM more profitable?

Yum! Brands has a net margin of 18.42% compared to Domino's Pizza's net margin of 12.84%. Domino's Pizza's return on equity of -15.45% beat Yum! Brands' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Domino's Pizza	12.84%	-15.45%	33.56%
Yum! Brands	18.42%	-20.80%	24.37%

Do analysts rate DPZ or YUM?

Domino's Pizza currently has a consensus target price of $489.27, indicating a potential upside of 2.32%. Yum! Brands has a consensus target price of $159.86, indicating a potential upside of 8.14%. Given Yum! Brands' higher possible upside, analysts plainly believe Yum! Brands is more favorable than Domino's Pizza.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Domino's Pizza	2 Sell rating(s)	10 Hold rating(s)	15 Buy rating(s)	1 Strong Buy rating(s)	2.54
Yum! Brands	0 Sell rating(s)	13 Hold rating(s)	10 Buy rating(s)	0 Strong Buy rating(s)	2.43

Do insiders & institutionals have more ownership in DPZ or YUM?

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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Domino's Pizza beats Yum! Brands on 12 of the 20 factors compared between the two stocks.