Domino’s Pizza (NASDAQ:DPZ – Get Free Report) and Tuniu (NASDAQ:TOUR – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.
Analyst Recommendations
This is a summary of current ratings and price targets for Domino’s Pizza and Tuniu, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Domino’s Pizza | 1 | 15 | 15 | 1 | 2.50 |
| Tuniu | 1 | 0 | 0 | 0 | 1.00 |
Domino’s Pizza currently has a consensus price target of $380.87, indicating a potential upside of 18.15%. Given Domino’s Pizza’s stronger consensus rating and higher possible upside, analysts clearly believe Domino’s Pizza is more favorable than Tuniu.
Risk & Volatility
Domino’s Pizza has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Tuniu has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.
Profitability
This table compares Domino’s Pizza and Tuniu’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Domino’s Pizza | 12.03% | -15.48% | 34.38% |
| Tuniu | 3.73% | 3.17% | 1.90% |
Earnings & Valuation
This table compares Domino’s Pizza and Tuniu”s top-line 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 | 2.15 | $601.70 million | $18.15 | 17.76 |
| Tuniu | $593.05 million | 0.09 | $4.45 million | $0.32 | 15.00 |
Domino’s Pizza has higher revenue and earnings than Tuniu. Tuniu 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.
Institutional and Insider Ownership
94.6% of Domino’s Pizza shares are held by institutional investors. 0.9% of Domino’s Pizza shares are held by insiders. Comparatively, 76.1% of Tuniu shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company 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 2.5%. Tuniu pays an annual dividend of $1.17 per share and has a dividend yield of 24.4%. Domino’s Pizza pays out 43.9% of its earnings in the form of a dividend. Tuniu pays out 365.6% 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 raised its dividend for 12 consecutive years.
Summary
Domino’s Pizza beats Tuniu on 15 of the 18 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 Tuniu
Tuniu Corporation operates as an online leisure travel company in China. The company offers various packaged tours, including organized and self-guided tours; and other travel-related services, such as tourist attraction tickets, visa application services, accommodation reservation, financial services, and hotel booking services, as well as air, train, and bus ticketing for leisure travelers. It also provides car rental and insurance services, as well as advertising services to tourism boards and bureaus. The company offers its products and services through various online and offline channels, including tuniu.com website; mobile platform; a call center in Nanjing; and other offline retail stores in China. Tuniu Corporation was founded in 2006 and is headquartered in Nanjing, the People's Republic of China.
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