Head to Head Comparison: Domino’s Pizza (NASDAQ:DPZ) versus Dine Brands Global (NYSE:DIN)

Domino’s Pizza (NASDAQ:DPZ) and Dine Brands Global (NYSE:DIN) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Dividends

Domino’s Pizza pays an annual dividend of $7.96 per share and has a dividend yield of 2.5%. Dine Brands Global pays an annual dividend of $0.76 per share and has a dividend yield of 2.2%. Domino’s Pizza pays out 43.9% of its earnings in the form of a dividend. Dine Brands Global pays out 161.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Domino’s Pizza has raised its dividend for 12 consecutive years. Domino’s Pizza is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Domino’s Pizza and Dine Brands Global”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Domino’s Pizza	$5.07 billion	2.10	$601.70 million	$18.15	17.79
Dine Brands Global	$900.00 million	0.50	$17.10 million	$0.47	75.03

Domino’s Pizza has higher revenue and earnings than Dine Brands Global. Domino’s Pizza is trading at a lower price-to-earnings ratio than Dine Brands Global, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Domino’s Pizza has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Dine Brands Global has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.

Profitability

This table compares Domino’s Pizza and Dine Brands Global’s 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%
Dine Brands Global	0.75%	-20.34%	3.17%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Domino’s Pizza and Dine Brands Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Domino’s Pizza	1	15	15	1	2.50
Dine Brands Global	0	9	0	0	2.00

Domino’s Pizza presently has a consensus target price of $380.87, indicating a potential upside of 17.93%. Dine Brands Global has a consensus target price of $33.25, indicating a potential downside of 5.71%. Given Domino’s Pizza’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Domino’s Pizza is more favorable than Dine Brands Global.

Insider & Institutional Ownership

94.6% of Domino’s Pizza shares are owned by institutional investors. Comparatively, 92.8% of Dine Brands Global shares are owned by institutional investors. 0.9% of Domino’s Pizza shares are owned by insiders. Comparatively, 6.7% of Dine Brands Global shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Domino’s Pizza beats Dine Brands Global on 16 of the 18 factors compared between the two stocks.

About Domino’s Pizza

Domino’s Pizza, Inc., through its subsidiaries, operates as a pizza company in the United States and internationally. The company operates through three segments: U.S. Stores, International Franchise, and Supply Chain. It offers pizzas under the Domino’s brand name through company-owned and franchised stores. It also provides oven-baked sandwiches, pastas, boneless chicken and chicken wings, breads and dips, desserts, and soft drink products, as well as loaded tots and pepperoni stuffed cheesy breads. Domino’s Pizza, Inc. was founded in 1960 and is headquartered in Ann Arbor, Michigan.

About Dine Brands Global

Dine Brands Global, Inc., together with its subsidiaries, owns, franchises, and operates restaurants in the United States and internationally. The company operates through six segments: Applebee's Franchise Operations, International House of Pancakes (IHOP) Franchise Solutions, Fuzzy's franchise operations, Rental Operations, Financing Operations, and Company-Operated Restaurant Operations. It owns and franchises three restaurant concepts, including Applebee's Neighborhood Grill + Bar within the casual dining category; and IHOP in the family dining category of the restaurant industry; Fuzzy's Taco Shop within the fast-casual dining category. In addition, its Applebee's restaurants offer American fare with drinks and local draft beers; IHOP restaurants provide full table services, food and beverage; and Fuzzy's Taco Shop offers baja-style mexican food like baja tacos, chips and queso, guacamole and salsa made in house, and a full bar including margaritas, and cold draft beer. The company was formerly known as DineEquity, Inc. and changed its name to Dine Brands Global, Inc. in February 2018. Dine Brands Global, Inc. was founded in 1958 and is headquartered in Pasadena, California.