Domino’s Pizza (NASDAQ:DPZ – Get Free Report) and GreenTree Hospitality Group (NYSE:GHG – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.
Institutional & Insider Ownership
94.6% of Domino’s Pizza shares are owned by institutional investors. Comparatively, 8.1% of GreenTree Hospitality Group shares are owned by institutional investors. 0.9% of Domino’s Pizza shares are owned by company insiders. Comparatively, 88.7% of GreenTree Hospitality Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Dividends
Domino’s Pizza pays an annual dividend of $7.96 per share and has a dividend yield of 2.3%. GreenTree Hospitality Group pays an annual dividend of $0.05 per share and has a dividend yield of 4.7%. Domino’s Pizza pays out 45.2% of its earnings in the form of a dividend. GreenTree Hospitality Group pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Domino’s Pizza has increased its dividend for 12 consecutive years.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Domino’s Pizza | 1 | 14 | 16 | 0 | 2.48 |
| GreenTree Hospitality Group | 1 | 0 | 0 | 0 | 1.00 |
Domino’s Pizza currently has a consensus price target of $397.42, indicating a potential upside of 16.17%. Given Domino’s Pizza’s stronger consensus rating and higher possible upside, analysts clearly believe Domino’s Pizza is more favorable than GreenTree Hospitality Group.
Profitability
This table compares Domino’s Pizza and GreenTree Hospitality Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Domino’s Pizza | 11.86% | -15.15% | 34.16% |
| GreenTree Hospitality Group | 4.14% | 2.49% | 0.84% |
Risk and Volatility
Domino’s Pizza has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, GreenTree Hospitality Group has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.
Valuation and Earnings
This table compares Domino’s Pizza and GreenTree Hospitality Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Domino’s Pizza | $4.94 billion | 2.29 | $601.70 million | $17.63 | 19.40 |
| GreenTree Hospitality Group | $156.92 million | 0.69 | $23.85 million | $0.05 | 21.40 |
Domino’s Pizza has higher revenue and earnings than GreenTree Hospitality Group. Domino’s Pizza is trading at a lower price-to-earnings ratio than GreenTree Hospitality Group, indicating that it is currently the more affordable of the two stocks.
Summary
Domino’s Pizza beats GreenTree Hospitality Group on 13 of the 17 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 GreenTree Hospitality Group
GreenTree Hospitality Group Ltd., through its subsidiaries, develops leased-and-operated, and franchised-and-managed hotels under the GreenTree Inns brand in the People's Republic of China. It also engages in investment holding activities; and provision of information technology services. The company was founded in 2004 and is headquartered in Shanghai, the People's Republic of China.
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