Comparing Domino’s Pizza (DPZ) and Coffee (JVA)

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

Institutional & Insider Ownership

94.5% of Domino’s Pizza shares are owned by institutional investors. Comparatively, 22.9% of Coffee shares are owned by institutional investors. 4.0% of Domino’s Pizza shares are owned by company insiders. Comparatively, 12.0% of Coffee shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Domino’s Pizza 10.60% -11.92% 38.83%
Coffee 1.13% 3.91% 2.52%

Dividends

Domino’s Pizza pays an annual dividend of $2.20 per share and has a dividend yield of 0.8%. Coffee does not pay a dividend. Domino’s Pizza pays out 41.2% of its earnings in the form of a dividend. Domino’s Pizza has increased its dividend for 4 consecutive years.

Analyst Ratings

This is a summary of recent recommendations for Domino’s Pizza and Coffee, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Domino’s Pizza 0 8 13 0 2.62
Coffee 0 0 1 0 3.00

Domino’s Pizza presently has a consensus price target of $272.86, suggesting a potential upside of 3.08%. Coffee has a consensus price target of $9.00, suggesting a potential upside of 99.12%. Given Coffee’s stronger consensus rating and higher probable upside, analysts clearly believe Coffee is more favorable than Domino’s Pizza.

Risk and Volatility

Domino’s Pizza has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, Coffee has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.

Earnings & Valuation

This table compares Domino’s Pizza and Coffee’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Domino’s Pizza $2.79 billion 3.95 $277.90 million $5.34 49.57
Coffee $77.13 million 0.33 $460,000.00 N/A N/A

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

Summary

Domino’s Pizza beats Coffee on 10 of the 16 factors compared between the two stocks.

About Domino’s Pizza

Domino's Pizza, Inc., through its subsidiaries, operates as a pizza delivery company in the United States and internationally. It operates through three segments: Domestic Stores, International Franchise, and Supply Chain. The company offers pizzas under the Domino's Pizza brand name through company-owned and franchised Domino's Pizza stores. As of June 18, 2018 it operated approximately 15,000 stores in approximately 85 markets. Domino's Pizza, Inc. was founded in 1960 and is headquartered in Ann Arbor, Michigan.

About Coffee

Coffee Holding Co., Inc. manufactures, roasts, packages, markets, and distributes roasted and blended coffees in the United States, Canada, Australia, England, and China. The company offers wholesale green coffee products, which include unroasted raw beans of approximately 90 varieties that are sold to large, medium, and small roasters, as well as to coffee shop operators. It also roasts, blends, packages, and sells coffee under private labels. As of October 31, 2017, the company supplied private label coffee under approximately 26 labels to wholesalers and retailers in cans, brick packages, and instants of various sizes. In addition, it roasts, blends, and packages company label branded coffee to supermarkets, wholesalers, and individually owned and multi-unit retail customers. Further, the company offers tabletop coffee roasting equipment, instant coffees, and tea products for its customers. Its coffee brands include Cafe Caribe, Don Manuel, S&W, Cafe Supremo, Via Roma, Premier Roasters, and Harmony Bay. The company was founded in 1971 and is headquartered in Staten Island, New York.

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