Domino’s Pizza (NASDAQ:DPZ) and BJ’s Restaurants (NASDAQ:BJRI) Head to Head Analysis

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

Analyst Ratings

This is a breakdown of recent recommendations for Domino’s Pizza and BJ’s Restaurants, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Domino’s Pizza	2	12	17	0	2.48
BJ’s Restaurants	2	6	2	0	2.00

Domino’s Pizza presently has a consensus target price of $421.35, indicating a potential upside of 26.87%. BJ’s Restaurants has a consensus target price of $41.88, indicating a potential upside of 10.23%. Given Domino’s Pizza’s stronger consensus rating and higher possible upside, equities analysts plainly believe Domino’s Pizza is more favorable than BJ’s Restaurants.

Volatility & Risk

Domino’s Pizza has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, BJ’s Restaurants has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.

Institutional & Insider Ownership

94.6% of Domino’s Pizza shares are owned by institutional investors. Comparatively, 100.0% of BJ’s Restaurants shares are owned by institutional investors. 0.9% of Domino’s Pizza shares are owned by company insiders. Comparatively, 4.9% of BJ’s Restaurants shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Domino’s Pizza	11.89%	-15.04%	33.66%
BJ’s Restaurants	3.49%	13.82%	5.01%

Earnings and Valuation

This table compares Domino’s Pizza and BJ’s Restaurants”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	2.24	$601.70 million	$17.37	19.12
BJ’s Restaurants	$1.40 billion	0.57	$48.81 million	$2.15	17.67

Domino’s Pizza has higher revenue and earnings than BJ’s Restaurants. BJ’s Restaurants 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.

Summary

Domino’s Pizza beats BJ’s Restaurants on 10 of the 14 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 BJ’s Restaurants

BJ’s Restaurants, Inc. owns and operates casual dining restaurants in the United States. Its restaurants offer pizzas, craft and other beers, appetizers, entrées, pastas, sandwiches, specialty salads, and desserts under brand name Pizookie. The company was formerly known as Chicago Pizza & Brewery, Inc. and changed its name to BJ’s Restaurants, Inc. in August 2004. BJ’s Restaurants, Inc. was founded in 1978 and is based in Huntington Beach, California.