Head-To-Head Analysis: BT Brands (NASDAQ:BTBD) and Domino’s Pizza (NASDAQ:DPZ)

BT Brands (NASDAQ:BTBD) and Domino’s Pizza (NASDAQ:DPZ) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BT Brands	-5.10%	-9.97%	-6.13%
Domino’s Pizza	12.18%	-15.28%	34.06%

Analyst Recommendations

This is a summary of current recommendations and price targets for BT Brands and Domino’s Pizza, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BT Brands	1	0	0	0	1.00
Domino’s Pizza	1	13	11	2	2.52

Domino’s Pizza has a consensus target price of $475.37, suggesting a potential upside of 29.90%. Given Domino’s Pizza’s stronger consensus rating and higher possible upside, analysts plainly believe Domino’s Pizza is more favorable than BT Brands.

Institutional and Insider Ownership

0.4% of BT Brands shares are owned by institutional investors. Comparatively, 94.6% of Domino’s Pizza shares are owned by institutional investors. 19.6% of BT Brands shares are owned by company insiders. Comparatively, 0.9% 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.

Valuation & Earnings

This table compares BT Brands and Domino’s Pizza”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BT Brands	$13.49 million	0.74	-$690,000.00	($0.10)	-16.20
Domino’s Pizza	$4.94 billion	2.49	$601.70 million	$17.57	20.83

Domino’s Pizza has higher revenue and earnings than BT Brands. BT Brands 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.

Risk & Volatility

BT Brands has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Domino’s Pizza has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Summary

Domino’s Pizza beats BT Brands on 13 of the 15 factors compared between the two stocks.

About BT Brands

BT Brands, Inc. owns and operates fast-food restaurants in the north central region of United States. The company operates Burger Time restaurants located in Minnesota, North Dakota, and South Dakota; and a Dairy Queen franchise in Ham Lake, Minnesota. Its Burger Time restaurants provide various burgers and other food products, such as chicken sandwiches, pulled pork sandwiches, chicken chunks, side dishes, and soft drinks; and Dairy Queen restaurant offers burgers, chicken, sides, ice cream and other desserts, and various beverages. The company was founded in 1987 and is based in West Fargo, North Dakota.

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.