DPZ vs. YUM, DRI, TXRH, WEN, EAT, CAKE, BLMN, PZZA, CBRL, and JACK
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), Cracker Barrel Old Country Store (CBRL), and Jack in the Box (JACK). 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 better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, media sentiment, profitability, risk, community ranking and valuation.
Yum! Brands has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Domino's Pizza has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.
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.
Yum! Brands received 176 more outperform votes than Domino's Pizza when rated by MarketBeat users. Likewise, 65.30% of users gave Yum! Brands an outperform vote while only 62.23% of users gave Domino's Pizza an outperform vote.
Yum! Brands pays an annual dividend of $2.68 per share and has a dividend yield of 2.0%. 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.
In the previous week, Yum! Brands had 2 more articles in the media than Domino's Pizza. MarketBeat recorded 10 mentions for Yum! Brands and 8 mentions for Domino's Pizza. Yum! Brands' average media sentiment score of 1.03 beat Domino's Pizza's score of 0.71 indicating that Domino's Pizza is being referred to more favorably in the news media.
82.4% of Yum! Brands shares are held by institutional investors. Comparatively, 94.6% of Domino's Pizza shares are held by institutional investors. 0.3% of Yum! Brands shares are held by company insiders. Comparatively, 0.8% of Domino's Pizza shares are held by company 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.
Yum! Brands currently has a consensus price target of $143.27, suggesting a potential upside of 4.25%. Domino's Pizza has a consensus price target of $518.46, suggesting a potential upside of 1.94%. Given Domino's Pizza's higher probable upside, research analysts plainly believe Yum! Brands is more favorable than Domino's Pizza.
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.
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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