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 valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Analyst Recommendations

This is a summary of current ratings and target prices 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 target price of $9.00, suggesting a potential upside of 116.87%. Domino’s Pizza has a consensus target price of $272.86, suggesting a potential upside of 5.10%. Given Coffee’s stronger consensus rating and higher possible upside, equities analysts clearly believe Coffee is more favorable than Domino’s Pizza.

Earnings and Valuation

This table compares Coffee and Domino’s Pizza’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Coffee $77.13 million 0.30 $460,000.00 N/A N/A
Domino’s Pizza $2.79 billion 3.87 $277.90 million $5.34 48.62

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

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%

Volatility & Risk

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

Insider & Institutional Ownership

22.9% of Coffee shares are owned by institutional investors. Comparatively, 94.5% of Domino’s Pizza shares are owned by institutional investors. 12.0% of Coffee shares are owned by insiders. Comparatively, 4.0% of Domino’s Pizza shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

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.

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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