Reviewing J d Wetherspoon (OTCMKTS:JDWPY) & Domino’s Pizza (NASDAQ:DPZ)

Domino’s Pizza (NASDAQ:DPZ) and J d Wetherspoon (OTCMKTS:JDWPY) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.

Profitability

This table compares Domino’s Pizza and J d Wetherspoon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Domino’s Pizza	12.16%	-14.91%	33.28%
J d Wetherspoon	N/A	N/A	N/A

Volatility and Risk

Domino’s Pizza has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, J d Wetherspoon has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Insider and Institutional Ownership

94.6% of Domino’s Pizza shares are owned by institutional investors. 0.8% of Domino’s Pizza shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Domino’s Pizza pays an annual dividend of $6.96 per share and has a dividend yield of 1.7%. J d Wetherspoon pays an annual dividend of $1.04 per share and has a dividend yield of 2.4%. Domino’s Pizza pays out 40.7% of its earnings in the form of a dividend. Domino’s Pizza has raised its dividend for 12 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Domino’s Pizza and J d Wetherspoon, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Domino’s Pizza	2	11	13	1	2.48
J d Wetherspoon	0	0	0	0	0.00

Domino’s Pizza presently has a consensus target price of $490.32, suggesting a potential upside of 19.31%. Given Domino’s Pizza’s stronger consensus rating and higher probable upside, equities analysts plainly believe Domino’s Pizza is more favorable than J d Wetherspoon.

Earnings & Valuation

This table compares Domino’s Pizza and J d Wetherspoon”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Domino’s Pizza	$4.71 billion	2.95	$584.17 million	$17.11	24.02
J d Wetherspoon	$2.76 billion	0.35	$88.36 million	N/A	N/A

Domino’s Pizza has higher revenue and earnings than J d Wetherspoon.

Summary

Domino’s Pizza beats J d Wetherspoon on 13 of the 16 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 J d Wetherspoon

J D Wetherspoon plc owns and operates pubs and hotels in the United Kingdom and the Republic of Ireland. The company was founded in 1979 and is based in Watford, the United Kingdom.