WallStSmart

Domino's Pizza Inc Common Stock (DPZ)vsStarbucks Corporation (SBUX)

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Smart Verdict

WallStSmart Research — data-driven comparison

Starbucks Corporation generates 657% more annual revenue ($38.34B vs $5.07B). DPZ leads profitability with a 12.0% profit margin vs 5.2%. SBUX appears more attractively valued with a PEG of 1.11. DPZ earns a higher WallStSmart Score of 55/100 (C).

DPZ

Buy

55

out of 100

Grade: C

Growth: 4.7Profit: 7.0Value: 5.3Quality: 6.0
Piotroski: 5/9Altman Z: 1.72

SBUX

Buy

51

out of 100

Grade: C-

Growth: 5.3Profit: 5.5Value: 5.3Quality: 5.0
Piotroski: 2/9Altman Z: 1.07
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DPZSignificantly Overvalued (-55.7%)

Margin of Safety

-55.7%

Fair Value

$246.63

Current Price

$309.45

$62.82 premium

UndervaluedFair: $246.63Overvalued
SBUXUndervalued (+20.7%)

Margin of Safety

+20.7%

Fair Value

$124.95

Current Price

$103.20

$21.75 discount

UndervaluedFair: $124.95Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DPZ3 strengths · Avg: 8.7/10
Debt/EquityHealth
-0.7510/10

Conservative balance sheet, low leverage

P/E RatioValuation
17.0x8/10

Attractively priced relative to earnings

Operating MarginProfitability
20.4%8/10

Strong operational efficiency at 20.4%

SBUX4 strengths · Avg: 9.3/10
EPS GrowthGrowth
85.7%10/10

Earnings expanding 85.7% YoY

Debt/EquityHealth
-2.9210/10

Conservative balance sheet, low leverage

Market CapQuality
$111.17B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.35B8/10

Generating 1.4B in free cash flow

Areas to Watch

DPZ3 concerns · Avg: 3.7/10
Revenue GrowthGrowth
3.4%4/10

3.4% revenue growth

Altman Z-ScoreHealth
1.724/10

Distress zone — elevated risk

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

SBUX4 concerns · Avg: 2.8/10
Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
5.2%3/10

5.2% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
56.4x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : DPZ

The strongest argument for DPZ centers on Debt/Equity, P/E Ratio, Operating Margin. PEG of 1.35 suggests the stock is reasonably priced for its growth.

Bull Case : SBUX

The strongest argument for SBUX centers on EPS Growth, Debt/Equity, Market Cap. PEG of 1.11 suggests the stock is reasonably priced for its growth.

Bear Case : DPZ

The primary concerns for DPZ are Revenue Growth, Altman Z-Score, Return on Equity.

Bear Case : SBUX

The primary concerns for SBUX are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 56.4x leaves little room for execution misses.

Key Dynamics to Monitor

SBUX carries more volatility with a beta of 0.97 — expect wider price swings.

DPZ is growing revenue faster at 3.4% — sustainability is the question.

SBUX generates stronger free cash flow (1.4B), providing more financial flexibility.

Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DPZ scores higher overall (55/100 vs 51/100). SBUX offers better value entry with a 20.7% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Domino's Pizza Inc Common Stock

CONSUMER CYCLICAL · RESTAURANTS · USA

Domino's Pizza, Inc., branded as Domino's, is an American multinational pizza restaurant chain founded in 1960. The corporation is headquartered at the Domino's Farms Office Park in Ann Arbor, Michigan.

Starbucks Corporation

CONSUMER CYCLICAL · RESTAURANTS · USA

Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. As the world's largest coffeehouse chain, Starbucks is seen to be the main representation of the United States' second wave of coffee culture.

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