Comparing Coffee (JVA) & Domino’s Pizza (DPZ)

Coffee (NASDAQ:JVA) and Domino’s Pizza (NYSE:DPZ) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Coffee 1.13% 3.91% 2.52%
Domino’s Pizza 10.60% -11.92% 38.83%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Coffee and Domino’s Pizza, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coffee 0 0 1 0 3.00
Domino’s Pizza 0 8 13 0 2.62

Coffee currently has a consensus price target of $9.00, indicating a potential upside of 123.89%. Domino’s Pizza has a consensus price target of $272.86, indicating a potential upside of 3.95%. Given Coffee’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Coffee is more favorable than Domino’s Pizza.

Valuation & Earnings

This table compares Coffee and Domino’s Pizza’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Coffee $77.13 million 0.29 $460,000.00 N/A N/A
Domino’s Pizza $2.79 billion 3.92 $277.90 million $5.34 49.16

Domino’s Pizza has higher revenue and earnings than Coffee.

Dividends

Domino’s Pizza pays an annual dividend of $2.20 per share and has a dividend yield of 0.8%. Coffee 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.

Volatility and Risk

Coffee has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Domino’s Pizza has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500.

Institutional & Insider Ownership

23.7% of Coffee shares are held by institutional investors. Comparatively, 93.2% of Domino’s Pizza shares are held by institutional investors. 12.0% of Coffee shares are held by company insiders. Comparatively, 4.0% of Domino’s Pizza shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Domino’s Pizza beats Coffee on 10 of the 16 factors compared between the two stocks.

Coffee Company Profile

Coffee Holding Co., Inc. manufactures, roasts, packages, markets, and distributes roasted and blended coffees in the United States, Canada, Australia, England, and China. The company offers wholesale green coffee products, which include unroasted raw beans of approximately 90 varieties that are sold to large, medium, and small roasters, as well as to coffee shop operators. It also roasts, blends, packages, and sells coffee under private labels. As of October 31, 2017, the company supplied private label coffee under approximately 26 labels to wholesalers and retailers in cans, brick packages, and instants of various sizes. In addition, it roasts, blends, and packages company label branded coffee to supermarkets, wholesalers, and individually owned and multi-unit retail customers. Further, the company offers tabletop coffee roasting equipment, instant coffees, and tea products for its customers. Its coffee brands include Cafe Caribe, Don Manuel, S&W, Cafe Supremo, Via Roma, Premier Roasters, and Harmony Bay. The company was founded in 1971 and is headquartered in Staten Island, New York.

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 June 18, 2018 it operated approximately 15,000 stores in approximately 85 markets. Domino's Pizza, Inc. was founded in 1960 and is headquartered in Ann Arbor, Michigan.

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