DPZ vs. DKS, BBY, WSM, DRI, WBA, YUMC, CVNA, ULTA, DECK, and BLDR
Should you be buying Domino's Pizza stock or one of its competitors? The main competitors of Domino's Pizza include DICK'S Sporting Goods (DKS), Best Buy (BBY), Williams-Sonoma (WSM), Darden Restaurants (DRI), Walgreens Boots Alliance (WBA), Yum China (YUMC), Carvana (CVNA), Ulta Beauty (ULTA), Deckers Outdoor (DECK), and Builders FirstSource (BLDR). These companies are all part of the "retail/wholesale" sector.
Domino's Pizza (NYSE:DPZ) and DICK'S Sporting Goods (NYSE:DKS) are both large-cap retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, media sentiment, risk, analyst recommendations, dividends, valuation, community ranking and profitability.
Domino's Pizza pays an annual dividend of $6.04 per share and has a dividend yield of 1.2%. DICK'S Sporting Goods pays an annual dividend of $4.40 per share and has a dividend yield of 2.1%. Domino's Pizza pays out 41.2% of its earnings in the form of a dividend. DICK'S Sporting Goods pays out 36.1% 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. DICK'S Sporting Goods is clearly the better dividend stock, given its higher yield and lower payout ratio.
DICK'S Sporting Goods has higher revenue and earnings than Domino's Pizza. DICK'S Sporting Goods 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.
94.6% of Domino's Pizza shares are owned by institutional investors. Comparatively, 89.8% of DICK'S Sporting Goods shares are owned by institutional investors. 0.8% of Domino's Pizza shares are owned by company insiders. Comparatively, 30.8% of DICK'S Sporting Goods shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
In the previous week, DICK'S Sporting Goods had 4 more articles in the media than Domino's Pizza. MarketBeat recorded 15 mentions for DICK'S Sporting Goods and 11 mentions for Domino's Pizza. Domino's Pizza's average media sentiment score of 0.94 beat DICK'S Sporting Goods' score of 0.38 indicating that Domino's Pizza is being referred to more favorably in the media.
DICK'S Sporting Goods received 556 more outperform votes than Domino's Pizza when rated by MarketBeat users. Likewise, 70.44% of users gave DICK'S Sporting Goods an outperform vote while only 62.23% of users gave Domino's Pizza an outperform vote.
Domino's Pizza currently has a consensus price target of $460.90, suggesting a potential downside of 7.78%. DICK'S Sporting Goods has a consensus price target of $208.64, suggesting a potential upside of 0.77%. Given DICK'S Sporting Goods' higher possible upside, analysts plainly believe DICK'S Sporting Goods is more favorable than Domino's Pizza.
Domino's Pizza has a net margin of 11.59% compared to DICK'S Sporting Goods' net margin of 8.06%. DICK'S Sporting Goods' return on equity of 42.99% beat Domino's Pizza's return on equity.
Domino's Pizza has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, DICK'S Sporting Goods has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500.
Summary
DICK'S Sporting Goods beats Domino's Pizza on 11 of the 20 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.
Skip ChartThis 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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