Krispy Kreme (DNUT) versus Its Peers Critical Comparison

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

Volatility and Risk

Krispy Kreme has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Krispy Kreme’s rivals have a beta of 1.62, suggesting that their average share price is 62% more volatile than the S&P 500.

Insider & 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, 22.2% of shares of all “Hotels, Restaurants & Leisure” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Krispy Kreme and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Krispy Kreme	3	0	1	0	1.50
Krispy Kreme Competitors	3776	17139	25367	899	2.50

Krispy Kreme currently has a consensus price target of $4.33, suggesting a potential upside of 42.08%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 62.60%. Given Krispy Kreme’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Krispy Kreme has less favorable growth aspects than its rivals.

Profitability

This table compares Krispy Kreme and its rivals’ 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	2.25%	-42.24%	2.07%

Earnings & Valuation

This table compares Krispy Kreme and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Krispy Kreme	$1.47 billion	-$515.77 million	-5.45
Krispy Kreme Competitors	$3.53 billion	$247.14 million	-162.43

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

Dividends

Krispy Kreme pays an annual dividend of $0.14 per share and has a dividend yield of 4.6%. Krispy Kreme pays out -25.0% of its earnings in the form of a dividend. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.3% and pay out 37.8% of their earnings in the form of a dividend. Krispy Kreme is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Summary

Krispy Kreme rivals beat Krispy Kreme on 10 of the 15 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.