Critical Comparison: Brinker International (NYSE:EAT) & Dominos Pizza UK (OTCMKTS:DPUKY)

Dominos Pizza UK (OTCMKTS:DPUKY) and Brinker International (NYSE:EAT) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Dominos Pizza UK and Brinker International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dominos Pizza UK	0	1	0	1	3.00
Brinker International	0	7	17	0	2.71

Brinker International has a consensus price target of $242.19, suggesting a potential upside of 3.92%. Given Brinker International’s higher possible upside, analysts plainly believe Brinker International is more favorable than Dominos Pizza UK.

Risk & Volatility

Dominos Pizza UK has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Brinker International has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.

Profitability

This table compares Dominos Pizza UK and Brinker International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dominos Pizza UK	N/A	N/A	N/A
Brinker International	8.39%	122.35%	17.42%

Earnings and Valuation

This table compares Dominos Pizza UK and Brinker International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dominos Pizza UK	$903.71 million	1.23	$77.28 million	N/A	N/A
Brinker International	$5.81 billion	1.68	$487.00 million	$10.89	21.40

Brinker International has higher revenue and earnings than Dominos Pizza UK.

Summary

Brinker International beats Dominos Pizza UK on 9 of the 11 factors compared between the two stocks.

About Dominos Pizza UK

Domino’s Pizza Group plc owns, operates, and franchises Domino’s Pizza stores. It operates stores in the United Kingdom and the Republic of Ireland, as well as leases its stores. The company was formerly known as Domino’s Pizza UK & IRL plc and changed its name to Domino’s Pizza Group plc in May 2012. Domino’s Pizza Group plc was founded in 1960 and is based in Milton Keynes, the United Kingdom.

About Brinker International

Brinker International, Inc., together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. It operates and franchises Chili's Grill & Bar and Maggiano's Little Italy restaurant brands. The company also operates virtual brands, It's Just Wings. Brinker International, Inc. was founded in 1975 and is headquartered in Dallas, Texas.