US Foods (NYSE: USFD) and Domino’s Pizza (NYSE:DPZ) are both mid-cap consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
This table compares US Foods and Domino’s Pizza’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Insider and Institutional Ownership
99.8% of US Foods shares are owned by institutional investors. Comparatively, 94.2% of Domino’s Pizza shares are owned by institutional investors. 0.6% of US Foods shares are owned by company insiders. Comparatively, 4.0% of Domino’s Pizza shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
US Foods has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, Domino’s Pizza has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for US Foods and Domino’s Pizza, as provided by MarketBeat.com.
||Strong Buy Ratings
US Foods currently has a consensus price target of $36.64, suggesting a potential upside of 10.38%. Domino’s Pizza has a consensus price target of $232.81, suggesting a potential upside of 0.58%. Given US Foods’ stronger consensus rating and higher probable upside, analysts clearly believe US Foods is more favorable than Domino’s Pizza.
Valuation & Earnings
This table compares US Foods and Domino’s Pizza’s revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
US Foods has higher revenue and earnings than Domino’s Pizza. US Foods 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.
Domino’s Pizza pays an annual dividend of $2.20 per share and has a dividend yield of 1.0%. US Foods 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.
Domino’s Pizza beats US Foods on 9 of the 17 factors compared between the two stocks.
US Foods Company Profile
US Foods Holding Corp., through its subsidiary, US Foods, Inc., markets and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. Its customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. The company was formerly known as USF Holding Corp. and changed its name to US Foods Holding Corp. in February 2016. US Foods Holding Corp. is headquartered in Rosemont, Illinois.
Domino’s Pizza Company Profile
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 February 20, 2018 it operated approximately 14,800 stores in approximately 85 markets. Domino's Pizza, Inc. was founded in 1960 and is headquartered in Ann Arbor, Michigan.
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