Tuniu (NASDAQ:TOUR – Get Free Report) and Domino’s Pizza (NASDAQ:DPZ – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.
Dividends
Tuniu pays an annual dividend of $1.17 per share and has a dividend yield of 24.4%. Domino’s Pizza pays an annual dividend of $7.96 per share and has a dividend yield of 2.5%. Tuniu pays out 365.6% 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 pays out 43.9% of its earnings in the form of a dividend. Domino’s Pizza has increased its dividend for 12 consecutive years.
Earnings and Valuation
This table compares Tuniu and Domino’s Pizza”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tuniu | $593.05 million | 0.09 | $4.45 million | $0.32 | 15.00 |
| Domino’s Pizza | $4.94 billion | 2.15 | $601.70 million | $18.15 | 17.76 |
Domino’s Pizza has higher revenue and earnings than Tuniu. Tuniu is trading at a lower price-to-earnings ratio than Domino’s Pizza, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Tuniu and Domino’s Pizza’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tuniu | 3.73% | 3.17% | 1.90% |
| Domino’s Pizza | 12.03% | -15.48% | 34.38% |
Risk & Volatility
Tuniu has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, Domino’s Pizza has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Tuniu and Domino’s Pizza, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tuniu | 1 | 0 | 0 | 0 | 1.00 |
| Domino’s Pizza | 1 | 15 | 15 | 1 | 2.50 |
Domino’s Pizza has a consensus price target of $380.87, indicating a potential upside of 18.15%. Given Domino’s Pizza’s stronger consensus rating and higher probable upside, analysts plainly believe Domino’s Pizza is more favorable than Tuniu.
Insider & Institutional Ownership
94.6% of Domino’s Pizza shares are held by institutional investors. 76.1% of Tuniu shares are held by company insiders. Comparatively, 0.9% of Domino’s Pizza shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Domino’s Pizza beats Tuniu on 15 of the 18 factors compared between the two stocks.
About Tuniu
Tuniu Corporation operates as an online leisure travel company in China. The company offers various packaged tours, including organized and self-guided tours; and other travel-related services, such as tourist attraction tickets, visa application services, accommodation reservation, financial services, and hotel booking services, as well as air, train, and bus ticketing for leisure travelers. It also provides car rental and insurance services, as well as advertising services to tourism boards and bureaus. The company offers its products and services through various online and offline channels, including tuniu.com website; mobile platform; a call center in Nanjing; and other offline retail stores in China. Tuniu Corporation was founded in 2006 and is headquartered in Nanjing, the People's Republic of China.
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.
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