Critical Contrast: Domino’s Pizza Group (OTCMKTS:DPUKY) & KDDI (OTCMKTS:KDDIY)

Domino’s Pizza Group (OTCMKTS:DPUKY) and KDDI (OTCMKTS:KDDIY) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Dividends

Domino’s Pizza Group pays an annual dividend of $0.15 per share and has a dividend yield of 1.7%. KDDI pays an annual dividend of $0.29 per share and has a dividend yield of 1.8%. KDDI pays out 29.0% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Domino’s Pizza Group and KDDI”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 Group	$845.35 million	2.03	$143.05 million	N/A	N/A
KDDI	$39.86 billion	1.77	$4.40 billion	$1.00	16.09

KDDI has higher revenue and earnings than Domino’s Pizza Group.

Risk and Volatility

Domino’s Pizza Group has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, KDDI has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Domino’s Pizza Group and KDDI, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Domino’s Pizza Group	0	0	0	0	0.00
KDDI	0	0	0	1	4.00

Insider and Institutional Ownership

0.1% of KDDI shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Domino’s Pizza Group	N/A	N/A	N/A
KDDI	10.62%	10.70%	4.18%

Summary

KDDI beats Domino’s Pizza Group on 9 of the 12 factors compared between the two stocks.

About Domino’s Pizza Group

Domino’s Pizza Group plc owns, operates, and franchises Domino’s Pizza stores. It operates stores in the United Kingdom and the Republic of Ireland, as well as leases its stores. The company was formerly known as Domino’s Pizza UK & IRL plc and changed its name to Domino’s Pizza Group plc in May 2012. Domino’s Pizza Group plc was founded in 1960 and is based in Milton Keynes, the United Kingdom.

About KDDI

KDDI Corporation provides telecommunications services in Japan and internationally. It operates in two segments, Personal Services and Business Services. The Personal Services segment offers telecommunication services and other services such as finance, energy, and LX through its multi-brands au, UQ mobile, and povo. The Business Services segment offers smartphones and other devices, network and cloud services, and data center services to corporate customers under the TELEHOUSE brand. The company was incorporated in 1984 and is headquartered in Tokyo, Japan.