Financial Survey: Mitchells & Butlers (OTCMKTS:MBPFF) vs. Domino’s Pizza (NASDAQ:DPZ)

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

Volatility and Risk

Domino’s Pizza has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Mitchells & Butlers has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.

Insider & 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, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Domino’s Pizza and Mitchells & Butlers’ 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%
Mitchells & Butlers	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Domino’s Pizza and Mitchells & Butlers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Domino’s Pizza	2	11	12	2	2.52
Mitchells & Butlers	0	0	0	0	0.00

Domino’s Pizza currently has a consensus price target of $490.40, suggesting a potential upside of 13.59%. Given Domino’s Pizza’s stronger consensus rating and higher possible upside, research analysts plainly believe Domino’s Pizza is more favorable than Mitchells & Butlers.

Earnings and Valuation

This table compares Domino’s Pizza and Mitchells & Butlers”s gross 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	3.10	$584.17 million	$17.11	25.23
Mitchells & Butlers	$3.54 billion	0.55	$231.13 million	N/A	N/A

Domino’s Pizza has higher revenue and earnings than Mitchells & Butlers.

Summary

Domino’s Pizza beats Mitchells & Butlers on 12 of the 13 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 Mitchells & Butlers

Mitchells & Butlers plc engages in the management of pubs, bars, and restaurants in the United Kingdom and Germany. The company operates its pubs and restaurants under the Alex, All Bar One, Browns, Castle, EGO, Ember Inns, Harvester, High Street, Innkeeper's Lodge, Miller & Carter, Nicholson's, O'Neill's, Premium Country Pubs, Sizzling Pubs, Suburban, Stonehouse Pizza & Carvery, Toby Carvery, and Vintage Inns brands and formats. It also engages in the leisure retailing; property leasing, property management, and development; and financing activities, as well as operates as a healthcare trustee. In addition, the company owns various trademarks. The company was founded in 1898 and is headquartered in Birmingham, the United Kingdom.