Analyzing Portillo’s (NASDAQ:PTLO) & Domino’s Pizza (NASDAQ:DPZ)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Portillo’s	2.12%	3.17%	0.98%
Domino’s Pizza	11.89%	-15.04%	33.66%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Portillo’s and Domino’s Pizza, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Portillo’s	1	10	3	0	2.14
Domino’s Pizza	2	12	17	0	2.48

Portillo’s currently has a consensus price target of $7.02, indicating a potential upside of 73.40%. Domino’s Pizza has a consensus price target of $419.74, indicating a potential upside of 35.33%. Given Portillo’s’ higher probable upside, analysts plainly believe Portillo’s is more favorable than Domino’s Pizza.

Institutional & Insider Ownership

98.3% of Portillo’s shares are owned by institutional investors. Comparatively, 94.6% of Domino’s Pizza shares are owned by institutional investors. 6.3% of Portillo’s shares are owned by insiders. Comparatively, 0.9% of Domino’s Pizza shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Portillo’s	$738.25 million	0.41	$19.34 million	$0.21	19.29
Domino’s Pizza	$4.94 billion	2.09	$601.70 million	$17.37	17.86

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

Risk & Volatility

Portillo’s has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500. Comparatively, Domino’s Pizza has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Summary

Domino’s Pizza beats Portillo’s on 8 of the 14 factors compared between the two stocks.

About Portillo’s

Portillo’s Inc. owns and operates fast casual restaurants in the United States. The company offers Chicago-style hot dogs and sausages, Italian beef sandwiches, char-grilled burgers, chopped salads, crinkle-cut French fries, homemade chocolate cakes, and chocolate cake shake. It offers its products through its website, application, and certain third-party platforms. Portillo’s Inc. was founded in 1963 and is based in Oak Brook, Illinois.

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.