Domino’s Pizza (DPZ) & Its Competitors Head to Head Contrast

Domino’s Pizza (NASDAQ:DPZ) is one of 383 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it weigh in compared to its peers? We will compare Domino’s Pizza to related businesses based on the strength of its valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Profitability

This table compares Domino’s Pizza and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Domino’s Pizza	12.03%	-15.48%	34.38%
Domino’s Pizza Competitors	8.51%	-42.00%	2.07%

Volatility & Risk

Domino’s Pizza has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Domino’s Pizza’s peers have a beta of 1.44, suggesting that their average stock price is 44% more volatile than the S&P 500.

Earnings and Valuation

This table compares Domino’s Pizza and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Domino’s Pizza	$5.07 billion	$601.70 million	18.36
Domino’s Pizza Competitors	$3.74 billion	$250.18 million	-162.06

Domino’s Pizza has higher revenue and earnings than its peers. Domino’s Pizza is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings and target prices for Domino’s Pizza and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Domino’s Pizza	1	15	15	1	2.50
Domino’s Pizza Competitors	3832	17319	25640	908	2.50

Domino’s Pizza presently has a consensus price target of $380.87, indicating a potential upside of 14.30%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 59.32%. Given Domino’s Pizza’s peers higher possible upside, analysts clearly believe Domino’s Pizza has less favorable growth aspects than its peers.

Insider & Institutional Ownership

94.6% of Domino’s Pizza shares are owned by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 0.9% of Domino’s Pizza shares are owned by insiders. Comparatively, 22.0% of shares of all “Hotels, Restaurants & Leisure” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Domino’s Pizza pays an annual dividend of $7.96 per share and has a dividend yield of 2.4%. Domino’s Pizza pays out 43.9% of its earnings in the form of a dividend. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.2% and pay out 39.1% of their earnings in the form of a dividend. Domino’s Pizza has increased its dividend for 12 consecutive years. Domino’s Pizza lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Domino’s Pizza beats its peers on 9 of the 15 factors compared.

Domino’s Pizza Company Profile

Domino’s Pizza, Inc. is a global pizza company that operates and franchises restaurants specializing in delivery and carryout. Its menu includes pizzas, chicken wings, sandwiches, pasta, bread sides, desserts and beverages, with offerings varying by location. The company traces its roots to a pizza shop opened in Ypsilanti, Michigan, in 1960. It adopted the Domino’s Pizza name in 1965 and has since grown through a predominantly franchised business model, serving customers in the United States and international markets.