Head to Head Analysis: Domino’s Pizza (NASDAQ:DPZ) vs. Tuniu (NASDAQ:TOUR)

Domino’s Pizza (NASDAQ:DPZ) and Tuniu (NASDAQ:TOUR) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings and price targets for Domino’s Pizza and Tuniu, as provided 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 13.94%. Given Domino’s Pizza’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Domino’s Pizza is more favorable than Tuniu.

Valuation & Earnings

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	2.23	$601.70 million	$18.15	18.42
Tuniu	$82.65 million	0.62	$4.45 million	$0.32	14.61

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.

Dividends

Domino’s Pizza pays an annual dividend of $7.96 per share and has a dividend yield of 2.4%. Tuniu pays an annual dividend of $1.18 per share and has a dividend yield of 25.2%. Domino’s Pizza pays out 43.9% of its earnings in the form of a dividend. Tuniu pays out 368.7% 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.

Volatility & Risk

Domino’s Pizza has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Tuniu has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.

Insider & Institutional Ownership

94.6% of Domino’s Pizza shares are owned by institutional investors. 0.9% of Domino’s Pizza shares are owned by insiders. Comparatively, 76.1% of Tuniu shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

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%

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.