Head to Head Comparison: Krispy Kreme (DNUT) & The Competition

Krispy Kreme (NASDAQ:DNUT) is one of 382 publicly-traded companies in the “Hotels, Restaurants & Leisure” industry, but how does it contrast to its competitors? We will compare Krispy Kreme to related companies based on the strength of its institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Insider and Institutional Ownership

81.7% of Krispy Kreme shares are held by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are held by institutional investors. 1.6% of Krispy Kreme shares are held by insiders. Comparatively, 22.1% of shares of all “Hotels, Restaurants & Leisure” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Krispy Kreme and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Krispy Kreme	2	1	1	0	1.75
Krispy Kreme Competitors	3795	17219	25498	901	2.50

Krispy Kreme currently has a consensus target price of $4.33, indicating a potential upside of 23.99%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 57.34%. Given Krispy Kreme’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Krispy Kreme has less favorable growth aspects than its competitors.

Profitability

This table compares Krispy Kreme and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Krispy Kreme	-6.16%	-1.17%	-0.31%
Krispy Kreme Competitors	2.32%	-40.06%	2.12%

Volatility & Risk

Krispy Kreme has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, Krispy Kreme’s competitors have a beta of 1.41, suggesting that their average stock price is 41% more volatile than the S&P 500.

Earnings & Valuation

This table compares Krispy Kreme and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Krispy Kreme	$1.52 billion	-$515.77 million	-6.24
Krispy Kreme Competitors	$3.31 billion	$250.20 million	-154.55

Krispy Kreme’s competitors have higher revenue and earnings than Krispy Kreme. Krispy Kreme is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Krispy Kreme competitors beat Krispy Kreme on 10 of the 13 factors compared.

About Krispy Kreme

Krispy Kreme, Inc., together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats. It also provides cookies under the Insomnia Cookies brand, cookie cakes, ice cream, cookie-wiches, and brownies; and operates Krispy Kreme company-owned shops and franchise shops. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in May 2021. Krispy Kreme, Inc. was founded in 1937 and is based in Charlotte, North Carolina.