Financial Review: Domino’s Pizza (NASDAQ:DPZ) and Portillo’s (NASDAQ:PTLO)

Domino’s Pizza (NASDAQ:DPZ) and Portillo’s (NASDAQ:PTLO) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, earnings, risk, valuation, institutional ownership and profitability.

Risk & Volatility

Domino’s Pizza has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, Portillo’s has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Domino’s Pizza and Portillo’s, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Domino’s Pizza	2	12	17	0	2.48
Portillo’s	1	9	4	0	2.21

Domino’s Pizza currently has a consensus price target of $421.35, indicating a potential upside of 29.78%. Portillo’s has a consensus price target of $7.02, indicating a potential upside of 56.41%. Given Portillo’s’ higher probable upside, analysts clearly believe Portillo’s is more favorable than Domino’s Pizza.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Domino’s Pizza	11.89%	-15.04%	33.66%
Portillo’s	2.64%	3.93%	1.24%

Valuation and Earnings

This table compares Domino’s Pizza and Portillo’s”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Domino’s Pizza	$4.94 billion	2.19	$601.70 million	$17.37	18.69
Portillo’s	$732.07 million	0.46	$19.34 million	$0.27	16.63

Domino’s Pizza has higher revenue and earnings than Portillo’s. Portillo’s 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.

Insider & Institutional Ownership

94.6% of Domino’s Pizza shares are owned by institutional investors. Comparatively, 98.3% of Portillo’s shares are owned by institutional investors. 0.9% of Domino’s Pizza shares are owned by insiders. Comparatively, 6.3% of Portillo’s shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Domino’s Pizza beats Portillo’s on 9 of the 14 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 Portillo’s

Portillo’s Inc. owns and operates fast casual restaurants in the United States. The company offers Chicago-style hot dogs and sausages, Italian beef sandwiches, char-grilled burgers, chopped salads, crinkle-cut French fries, homemade chocolate cakes, and chocolate cake shake. It offers its products through its website, application, and certain third-party platforms. Portillo’s Inc. was founded in 1963 and is based in Oak Brook, Illinois.