Critical Comparison: Domino’s Pizza (NASDAQ:DPZ) & Granite City Food & Brewery (OTCMKTS:GCFB)

Domino’s Pizza (NASDAQ:DPZ) and Granite City Food & Brewery (OTCMKTS:GCFB) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Risk & Volatility

Domino’s Pizza has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Granite City Food & Brewery has a beta of -0.62, meaning that its share price is 162% less volatile than the S&P 500.

Earnings & Valuation

This table compares Domino’s Pizza and Granite City Food & Brewery”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Domino’s Pizza	$4.85 billion	2.78	$584.17 million	$17.11	23.32
Granite City Food & Brewery	N/A	N/A	N/A	N/A	N/A

Domino’s Pizza has higher revenue and earnings than Granite City Food & Brewery.

Profitability

This table compares Domino’s Pizza and Granite City Food & Brewery’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Domino’s Pizza	12.16%	-14.91%	33.28%
Granite City Food & Brewery	N/A	N/A	N/A

Institutional & Insider Ownership

94.6% of Domino’s Pizza shares are held by institutional investors. 0.8% of Domino’s Pizza shares are held by company insiders. Comparatively, 26.3% of Granite City Food & Brewery shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Domino’s Pizza and Granite City Food & Brewery, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Domino’s Pizza	2	13	11	2	2.46
Granite City Food & Brewery	0	0	0	0	0.00

Domino’s Pizza presently has a consensus target price of $482.78, indicating a potential upside of 21.02%. Given Domino’s Pizza’s stronger consensus rating and higher possible upside, research analysts clearly believe Domino’s Pizza is more favorable than Granite City Food & Brewery.

Summary

Domino’s Pizza beats Granite City Food & Brewery on 9 of the 11 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 Granite City Food & Brewery

Granite City Food & Brewery, Ltd. operates casual dining restaurants in the United States. The company's upscale casual dining restaurants include the Granite City Food & Brewery restaurant that offers various menu items and handcrafted beers, as well as other regional craft beers; and the Cadillac Ranch All American Bar & Grill restaurant that offers American cuisine, including homemade meatloaf and pasta dishes. The company was founded in 1997 and is headquartered in Bloomington, Minnesota.