Domino's Pizza Inc (DPZ) vs Starbucks Corporation (SBUX)

Domino's Pizza Inc and Starbucks Corporation are both Restaurants companies. Starbucks Corporation is the larger, with a market value of $106.5B against $9.7B — 11.0× the size. Domino's Pizza Inc trades at the lower P/E: 16.6× against 54.5×. Domino's Pizza Inc grew revenue faster over the last twelve months: 5.16% against 4.49%. Domino's Pizza Inc has the higher net margin (11.9% vs 5.17%) and the higher return on invested capital (111.8% vs 93.0%). Both pay a dividend; Starbucks Corporation yields more (2.39% vs 1.14%). Across the 22 metrics below, Domino's Pizza Inc leads on 16 and Starbucks Corporation on 6.

Valuation

Metric DPZ SBUX Restaurants median
P/E 16.57 54.52 22.14
P/S 1.93 2.82 0.91
P/B n/m n/m 2.01
Price to free cash flow 14.51 29.68 19.41
EV/EBITDA 13.23 25.36 11.48
EV/Sales 2.83 3.07 1.20
Earnings yield 6.03% 1.83% 2.30%
Free cash flow yield 6.89% 3.37% 3.92%

Profitability

Metric DPZ SBUX Restaurants median
Gross margin 40.02% 67.70% 38.77%
Operating margin 19.52% 7.77% 4.30%
Net margin 11.86% 5.17% 1.85%
Free cash flow margin 13.30% 9.50% 3.12%
Return on equity (14.99%) (25.84%) 3.07%
Return on assets 33.38% 6.40% 1.50%
Return on invested capital 111.81% 92.99% 3.14%

Growth

Metric DPZ SBUX Restaurants median
Revenue growth (TTM) 5.16% 4.49% 5.16%
EPS growth (last fiscal year) 5.27% (50.76%) —
Revenue growth, 5-year CAGR 3.71% 9.60% 10.57%
Net income growth, 5-year CAGR 4.14% 14.87% 0.00%

Health

Metric DPZ SBUX Restaurants median
Debt to equity (1.23) (1.73) 0.10
Current ratio 1.54 0.76 0.81
Net debt to EBITDA 4.27 2.68 0.43

Dividend

Metric DPZ SBUX Restaurants median
Dividend yield 1.14% 2.39% 2.32%
Payout ratio 0.35 0.63 0.00

Size

Metric DPZ SBUX Restaurants median
Market cap 9.69b 106.50b 482.66m

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