Krispy Kreme (DNUT) Competitors

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

Is MCD or DNUT a better dividend stock?

McDonald's pays an annual dividend of $7.08 per share and has a dividend yield of 2.4%. Krispy Kreme pays an annual dividend of $0.14 per share and has a dividend yield of 4.5%. McDonald's pays out 62.5% of its earnings in the form of a dividend. Krispy Kreme pays out -107.7% 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 increased its dividend for 49 consecutive years. Krispy Kreme is clearly the better dividend stock, given its higher yield and lower payout ratio.

Do insiders & institutionals have more ownership in MCD or DNUT?

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

Is MCD or DNUT 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
McDonald's	31.75%	-195.27%	15.21%
Krispy Kreme	-1.36%	-2.13%	-0.81%

Which has more risk & volatility, MCD or DNUT?

McDonald's has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Krispy Kreme has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.

Does the media favor MCD or DNUT?

In the previous week, McDonald's had 71 more articles in the media than Krispy Kreme. MarketBeat recorded 107 mentions for McDonald's and 36 mentions for Krispy Kreme. McDonald's' average media sentiment score of 0.80 beat Krispy Kreme's score of 0.25 indicating that McDonald's is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
McDonald's	58 Very Positive mention(s)	10 Positive mention(s)	19 Neutral mention(s)	4 Negative mention(s)	10 Very Negative mention(s)	Positive
Krispy Kreme	5 Very Positive mention(s)	5 Positive mention(s)	20 Neutral mention(s)	4 Negative mention(s)	0 Very Negative mention(s)	Neutral

Do analysts prefer MCD or DNUT?

McDonald's currently has a consensus price target of $319.48, indicating a potential upside of 6.64%. Krispy Kreme has a consensus price target of $10.14, indicating a potential upside of 229.14%. Given Krispy Kreme's stronger consensus rating and higher probable upside, analysts clearly believe Krispy Kreme is more favorable than McDonald's.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
McDonald's	2 Sell rating(s)	14 Hold rating(s)	14 Buy rating(s)	0 Strong Buy rating(s)	2.40
Krispy Kreme	0 Sell rating(s)	4 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	2.67

Which has preferable earnings & valuation, MCD or DNUT?

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
McDonald's	$25.92B	8.26	$8.22B	$11.33	26.44
Krispy Kreme	$1.67B	0.32	$3.10M	-$0.13	-23.69

Summary

McDonald's beats Krispy Kreme on 11 of the 20 factors compared between the two stocks.