Head-To-Head Contrast: First Watch Restaurant Group (NASDAQ:FWRG) vs. Domino’s Pizza (NASDAQ:DPZ)

First Watch Restaurant Group (NASDAQ:FWRG) 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 earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Profitability

This table compares First Watch Restaurant Group and Domino’s Pizza’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Watch Restaurant Group	1.38%	2.85%	1.02%
Domino’s Pizza	11.89%	-15.04%	33.66%

Analyst Ratings

This is a breakdown of recent recommendations for First Watch Restaurant Group and Domino’s Pizza, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Watch Restaurant Group	1	1	9	2	2.92
Domino’s Pizza	1	12	17	0	2.53

First Watch Restaurant Group currently has a consensus target price of $19.27, indicating a potential upside of 54.55%. Domino’s Pizza has a consensus target price of $405.39, indicating a potential upside of 34.73%. Given First Watch Restaurant Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe First Watch Restaurant Group is more favorable than Domino’s Pizza.

Institutional and Insider Ownership

96.1% of First Watch Restaurant Group shares are owned by institutional investors. Comparatively, 94.6% of Domino’s Pizza shares are owned by institutional investors. 6.1% of First Watch Restaurant Group shares are owned by insiders. Comparatively, 0.9% of Domino’s Pizza shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares First Watch Restaurant Group and Domino’s Pizza”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Watch Restaurant Group	$1.27 billion	0.60	$19.43 million	$0.28	44.54
Domino’s Pizza	$4.94 billion	2.03	$601.70 million	$17.37	17.32

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

Volatility and Risk

First Watch Restaurant Group has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, Domino’s Pizza has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Summary

First Watch Restaurant Group beats Domino’s Pizza on 8 of the 15 factors compared between the two stocks.

About First Watch Restaurant Group

First Watch Restaurant Group, Inc., through its subsidiaries, operates and franchises restaurants under the First Watch trade name in the United States. The company was formerly known as AI Fresh Super Holdco, Inc. and changed its name to First Watch Restaurant Group, Inc. in December 2019. First Watch Restaurant Group, Inc. was founded in 1983 and is based in Bradenton, Florida.

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.