Domino’s Pizza (NASDAQ:DPZ) and Cracker Barrel Old Country Store (NASDAQ:CBRL) Head to Head Analysis

Cracker Barrel Old Country Store (NASDAQ:CBRL) and Domino’s Pizza (NASDAQ:DPZ) are both retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Volatility and Risk

Cracker Barrel Old Country Store has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Domino’s Pizza has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Earnings and Valuation

This table compares Cracker Barrel Old Country Store and Domino’s Pizza”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cracker Barrel Old Country Store	$3.48 billion	0.19	$46.38 million	$0.75	38.64
Domino’s Pizza	$4.71 billion	2.97	$584.17 million	$17.11	24.19

Domino’s Pizza has higher revenue and earnings than Cracker Barrel Old Country Store. Domino’s Pizza is trading at a lower price-to-earnings ratio than Cracker Barrel Old Country Store, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

96.0% of Cracker Barrel Old Country Store shares are held by institutional investors. Comparatively, 94.6% of Domino’s Pizza shares are held by institutional investors. 1.4% of Cracker Barrel Old Country Store shares are held by company insiders. Comparatively, 0.8% of Domino’s Pizza shares are held 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.

Profitability

This table compares Cracker Barrel Old Country Store and Domino’s Pizza’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cracker Barrel Old Country Store	0.49%	9.74%	2.06%
Domino’s Pizza	12.16%	-14.91%	33.28%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Cracker Barrel Old Country Store and Domino’s Pizza, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cracker Barrel Old Country Store	4	6	2	0	1.83
Domino’s Pizza	2	13	11	2	2.46

Cracker Barrel Old Country Store currently has a consensus price target of $35.25, indicating a potential upside of 21.64%. Domino’s Pizza has a consensus price target of $482.04, indicating a potential upside of 16.46%. Given Cracker Barrel Old Country Store’s higher possible upside, equities analysts clearly believe Cracker Barrel Old Country Store is more favorable than Domino’s Pizza.

Dividends

Cracker Barrel Old Country Store pays an annual dividend of $1.00 per share and has a dividend yield of 3.5%. Domino’s Pizza pays an annual dividend of $6.96 per share and has a dividend yield of 1.7%. Cracker Barrel Old Country Store pays out 133.3% 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 pays out 40.7% of its earnings in the form of a dividend. Domino’s Pizza has raised its dividend for 12 consecutive years.

Summary

Domino’s Pizza beats Cracker Barrel Old Country Store on 11 of the 18 factors compared between the two stocks.

About Cracker Barrel Old Country Store

Cracker Barrel Old Country Store, Inc. develops and operates the Cracker Barrel Old Country Store concept in the United States. Its Cracker Barrel stores consist of restaurants with a gift shop. The company's restaurants serve breakfast, lunch, and dinner daily, as well as dine-in, pick-up, and delivery services. Its gift shop offers various decorative and functional items, such as rocking chairs, seasonal gifts, apparel, toys, food, cookware, and various other gift items, as well as various candies, preserves, and other food items. The company was incorporated in 1969 and is headquartered in Lebanon, Tennessee.

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.