Papa Murphy’s Holdings (NASDAQ: FRSH) and Domino’s Pizza (NYSE:DPZ) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Dividends

Domino’s Pizza pays an annual dividend of $1.84 per share and has a dividend yield of 0.9%. Papa Murphy’s Holdings does not pay a dividend. Domino’s Pizza pays out 36.7% of its earnings in the form of a dividend. Papa Murphy’s Holdings has raised its dividend for 3 consecutive years.

Risk & Volatility

Papa Murphy’s Holdings has a beta of 0.06, meaning that its stock price is 94% less volatile than the S&P 500. Comparatively, Domino’s Pizza has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.

Valuation and Earnings

This table compares Papa Murphy’s Holdings and Domino’s Pizza’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Papa Murphy’s Holdings $125.10 million 0.81 $16.53 million ($0.63) -9.46
Domino’s Pizza $2.64 billion 3.82 $510.89 million $5.02 41.68

Domino’s Pizza has higher revenue and earnings than Papa Murphy’s Holdings. Papa Murphy’s Holdings 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 and Institutional Ownership

36.5% of Papa Murphy’s Holdings shares are owned by institutional investors. Comparatively, 94.2% of Domino’s Pizza shares are owned by institutional investors. 3.1% of Papa Murphy’s Holdings shares are owned by insiders. Comparatively, 3.6% of Domino’s Pizza shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Papa Murphy’s Holdings -8.43% 3.16% 1.15%
Domino’s Pizza 9.40% -13.28% 34.03%

Analyst Recommendations

This is a breakdown of recent recommendations for Papa Murphy’s Holdings and Domino’s Pizza, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Papa Murphy’s Holdings 0 4 0 0 2.00
Domino’s Pizza 0 11 10 0 2.48

Papa Murphy’s Holdings currently has a consensus target price of $4.75, suggesting a potential downside of 20.30%. Domino’s Pizza has a consensus target price of $198.19, suggesting a potential downside of 5.28%. Given Domino’s Pizza’s stronger consensus rating and higher possible upside, analysts clearly believe Domino’s Pizza is more favorable than Papa Murphy’s Holdings.

Summary

Domino’s Pizza beats Papa Murphy’s Holdings on 13 of the 16 factors compared between the two stocks.

Papa Murphy’s Holdings Company Profile

Papa Murphy’s Holdings, Inc. is a holding company. The Company, together with its subsidiaries, is a franchisor and operator of the Take ‘N’ Bake pizza chain in the United States. The Company franchises the right to operate Take ‘N’ Bake pizza franchises and operates Take ‘N’ Bake pizza stores owned by the Company. The Company operates through three segments: Domestic Company Stores, Domestic Franchise and International. Its Domestic Franchise segment consists of its domestic franchised stores, which represent its system-wide stores and derives its revenues from franchise and development fees and the collection of franchise royalties. The Domestic Company Stores segment consists of its Company-owned stores in the United States and derives its revenues from retail sales of pizza and side items to the general public. Its International segment consists of its stores outside of the United States, all of which are franchised and derives its revenues from franchise and development fees.

Domino’s Pizza Company Profile

Domino’s Pizza, Inc. is a pizza restaurant chain company. As of January 1, 2017, the Company operated in over 13,800 locations in over 85 markets around the world. The Company operates through three segments: domestic stores, international franchise and supply chain. Its basic menu features pizza products in various sizes and crust types. As of January 1, 2017, its Domestic Stores segment consisted primarily of its franchise operations, which consisted of 4,979 franchised stores located in the contiguous United States. As of January 1, 2017, its International Franchise segment consisted of a network of franchised stores in over 85 international markets. As of January 1, 2017, its supply chain segment operated 18 regional dough manufacturing and food supply chain centers in the United States, one thin crust manufacturing center, one vegetable processing center and one center providing equipment and supplies to certain of its domestic and international stores.

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