Krispy Kreme (DNUT) Competitors

Krispy Kreme (NASDAQ:DNUT) and McDonald's (NYSE:MCD) are related companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations, media sentiment and institutional ownership.

Which has preferable earnings and valuation, DNUT or MCD?

McDonald's has higher revenue and earnings than Krispy Kreme. Krispy Kreme is trading at a lower price-to-earnings ratio than McDonald's, 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
Krispy Kreme	$1.67B	0.35	$3.10M	-$0.13	-26.31
McDonald's	$25.92B	8.48	$8.22B	$11.33	27.14

Do analysts recommend DNUT or MCD?

Krispy Kreme currently has a consensus target price of $7.58, suggesting a potential upside of 121.49%. McDonald's has a consensus target price of $323.39, suggesting a potential upside of 5.18%. Given Krispy Kreme's higher possible upside, equities research analysts plainly believe Krispy Kreme is more favorable than McDonald's.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Krispy Kreme	0 Sell rating(s)	6 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.33
McDonald's	2 Sell rating(s)	13 Hold rating(s)	13 Buy rating(s)	0 Strong Buy rating(s)	2.39

Do institutionals & insiders hold more shares of DNUT or MCD?

81.7% of Krispy Kreme shares are owned by institutional investors. Comparatively, 70.3% of McDonald's shares are owned by institutional investors. 3.0% of Krispy Kreme shares are owned by company insiders. Comparatively, 0.3% of McDonald's shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Is DNUT or MCD more profitable?

McDonald's has a net margin of 31.75% compared to Krispy Kreme's net margin of -1.36%. Krispy Kreme's return on equity of -2.13% beat McDonald's' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Krispy Kreme	-1.36%	-2.13%	-0.81%
McDonald's	31.75%	-195.27%	15.21%

Is DNUT or MCD a better dividend stock?

Krispy Kreme pays an annual dividend of $0.14 per share and has a dividend yield of 4.1%. McDonald's pays an annual dividend of $7.08 per share and has a dividend yield of 2.3%. Krispy Kreme pays out -107.7% of its earnings in the form of a dividend. McDonald's pays out 62.5% 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. McDonald's has raised its dividend for 49 consecutive years. Krispy Kreme is clearly the better dividend stock, given its higher yield and lower payout ratio.

Does the media refer more to DNUT or MCD?

In the previous week, McDonald's had 116 more articles in the media than Krispy Kreme. MarketBeat recorded 132 mentions for McDonald's and 16 mentions for Krispy Kreme. McDonald's' average media sentiment score of 1.02 beat Krispy Kreme's score of 0.28 indicating that McDonald's is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Krispy Kreme	6 Very Positive mention(s)	0 Positive mention(s)	10 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
McDonald's	82 Very Positive mention(s)	13 Positive mention(s)	29 Neutral mention(s)	5 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more volatility & risk, DNUT or MCD?

Krispy Kreme has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, McDonald's has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.

Summary

McDonald's beats Krispy Kreme on 12 of the 19 factors compared between the two stocks.