Head to Head Comparison: First Watch Restaurant Group (NASDAQ:FWRG) & Domino’s Pizza (NASDAQ:DPZ)

Domino’s Pizza (NASDAQ:DPZ) and First Watch Restaurant Group (NASDAQ:FWRG) are both retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Profitability

This table compares Domino’s Pizza and First Watch Restaurant Group’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%
First Watch Restaurant Group	1.38%	2.85%	1.02%

Analyst Recommendations

This is a summary of current recommendations and price targets for Domino’s Pizza and First Watch Restaurant Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Domino’s Pizza	1	12	17	0	2.53
First Watch Restaurant Group	1	1	9	1	2.83

Domino’s Pizza currently has a consensus price target of $411.35, indicating a potential upside of 31.99%. First Watch Restaurant Group has a consensus price target of $19.27, indicating a potential upside of 47.23%. Given First Watch Restaurant Group’s stronger consensus rating and higher probable upside, analysts clearly believe First Watch Restaurant Group is more favorable than Domino’s Pizza.

Risk and Volatility

Domino’s Pizza has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, First Watch Restaurant Group has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Insider & Institutional Ownership

94.6% of Domino’s Pizza shares are held by institutional investors. Comparatively, 96.1% of First Watch Restaurant Group shares are held by institutional investors. 0.9% of Domino’s Pizza shares are held by company insiders. Comparatively, 6.1% of First Watch Restaurant Group shares are held 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.

Valuation and Earnings

This table compares Domino’s Pizza and First Watch Restaurant Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Domino’s Pizza	$4.98 billion	2.08	$601.70 million	$17.37	17.94
First Watch Restaurant Group	$1.22 billion	0.66	$19.43 million	$0.28	46.75

Domino’s Pizza has higher revenue and earnings than First Watch Restaurant Group. Domino’s Pizza is trading at a lower price-to-earnings ratio than First Watch Restaurant Group, indicating that it is currently the more affordable of the two stocks.

Summary

First Watch Restaurant Group beats Domino’s Pizza on 8 of the 15 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 First Watch Restaurant Group

First Watch Restaurant Group, Inc., through its subsidiaries, operates and franchises restaurants under the First Watch trade name in the United States. The company was formerly known as AI Fresh Super Holdco, Inc. and changed its name to First Watch Restaurant Group, Inc. in December 2019. First Watch Restaurant Group, Inc. was founded in 1983 and is based in Bradenton, Florida.