Compare Stocks › DPZ vs MS

Domino's Pizza, Inc. (DPZ) vs Morgan Stanley (MS): Which Is the Better Buy in 2026?

As of 2026-06-19, DPZ is overvalued at $312, with a DCF intrinsic value of $273 and a margin of safety of -14%. MS is undervalued at $223, with an intrinsic value of $298 and a margin of safety of 25%. Of the two, MS has the wider margin of safety.

DPZ

Domino's Pizza, Inc.

$312.47

Morgan Stanley

$223.17

Rewards

DPZ

★Domino's Pizza, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
★Domino's Pizza, Inc. scores 91/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
★Free cash flow has grown at a 20.1% CAGR over the past 4 years, demonstrating strong earnings power growth.

★Gross margin of 87.4% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
★Morgan Stanley scores 80/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
★Each dollar of retained earnings has created $3.56 of earning power — management is an exceptional capital allocator.

Risks

DPZ

⚠FCF yield of 5.0% suggests reasonable valuation assuming continued moderate growth.
⚠Net debt/EBITDA of 4.8x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.
⚠10 insider sales with no purchases over the past 12 months — a persistent pattern of insider selling.

⚠Trailing P/E of 20.2x is 26% above the historical average of 16.1x — the stock trades at a premium to its own history.
⚠PEG ratio of 2.66 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
⚠Altman Z-Score of 0.29 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.

Key Valuation Metrics

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DPZ

Valuation

$524.71M

Free Cash Flow

N/A

5.05%

FCF Yield

N/A

17.99

Trailing P/E

20.21

14.92

Forward P/E

17.56

Quality & Moat

14.81%

ROIC

3.38%

N/A

ROE

16.39%

28.70%

Gross Margin

87.39%

1.56

PEG Ratio

2.66

Balance Sheet Safety

N/A

Net Debt / Equity

Net cash

N/A

Interest Coverage

N/A

4.80

Net Debt / EBITDA

N/A

2.48%

Dividend Yield

1.81%

DPZ: 5Ties: 1MS: 1

DPZMS

Historical Fundamentals

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DPZ

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

$1 Retained Earnings Test

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DPZ

$1.61

created per $1 retained over 3 years

Value Creator

Σ Retained

$1.09B

Δ Market Cap

+$1.75B

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

$6.65

created per $1 retained over 3 years

Exceptional Value Creator

Σ Retained

$20.84B

Δ Market Cap

+$138.59B

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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DPZ

14.3% Overvalued

Price is 14.3% above estimated fair value

Current Price: $312.47

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $273.37

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

25.0% Margin of Safety

Price is 25.0% below estimated fair value

Current Price: $223.17

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $297.53

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Reverse DCF — Market-Implied Growth

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DPZ

What growth rate is the market pricing in at $312?

+11.0%

Market-Implied Owner Earnings Growth

Standard FCF implies +12.8%

The market implies +11.0% Owner Earnings growth, roughly in line with history — reasonably priced.

Standard FCF implies +12.8%, reflecting ongoing growth investment.

Requires positive FCF to compute implied growth rate.

Economic Moat Score

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DPZ

91/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

80/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by revenue predictability. Margin Stability is the area most vulnerable to competitive pressure.

Forensic Accounting

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DPZ

-3.03

Unlikely Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

-2.09

Possible Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Ownership Breakdown

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DPZ

Insiders 0.5%Institutions 112.7%

No. of Institutional Holders1,139

High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insiders 24.3%Institutions 62.8%Retail & Other 12.9%

No. of Institutional Holders3,208

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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DPZ

Buys (3M)

Buys (12M)

No open market insider purchases found.

Open market purchases · includes direct & indirect ownership · excludes option exercises

Buys (3M)

Buys (12M)

Total value (12M): $5,630

PETERSON DOUGLAS L

Director

$5,630

@ $156.39 · 2025-10-17

Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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DPZ

Sells (3M)

Sells (12M)

Total value (12M): $5.24M

GARCIA KELLY E

Officer

$151,817

@ $311.74 · 2026-06-11

GARCIA KELLY E

Officer

$152,822

@ $313.16 · 2026-05-21

GARCIA KELLY E

Chief Technology Officer

$162,167

@ $332.31 · 2026-04-30

REDDY SANDEEP

Chief Financial Officer

$220,823

@ $394.33 · 2026-03-13

HEADEN CYNTHIA A.

Officer

$292,617

@ $396.50 · 2026-03-13

PARRISH JESSICA L

Officer

$37,045

@ $394.10 · 2026-03-13

REDDY SANDEEP

Chief Financial Officer

$1.18M

@ $399.60 · 2026-03-11

HEADEN CYNTHIA A.

Officer

$697,302

@ $399.60 · 2026-03-11

PARRISH JESSICA L

Officer

$228,172

@ $399.60 · 2026-03-11

GARCIA KELLY E

Officer

$2.11M

@ $434.06 · 2025-12-16

BALLARD CHARLES ANDREW

Director

$199,651

@ $483.42 · 2025-05-01

GOLDMAN JAMES A

Director

$186,645

@ $484.79 · 2025-04-30

REDDY SANDEEP

Chief Financial Officer

$184,410

@ $462.18 · 2025-04-02

HEADEN CYNTHIA A.

Officer

$109,800

@ $450.00 · 2025-03-17

MORRIS KEVIN SCOTT

General Counsel

$2.37M

@ $437.00 · 2025-03-13

REDDY SANDEEP

Chief Financial Officer

$109,691

@ $433.56 · 2025-03-12

HEADEN CYNTHIA A.

Officer

$384,568

@ $433.56 · 2025-03-12

REDDY SANDEEP

Chief Financial Officer

$477,326

@ $443.20 · 2025-03-11

GARCIA KELLY E

Chief Technology Officer

$917,923

@ $436.28 · 2025-03-11

BALSON ANDREW B

Director

$2.95M

@ $492.46 · 2025-03-03

MORRIS KEVIN SCOTT

General Counsel

$1.21M

@ $459.00 · 2024-11-15

CANTOR DIANA F

Director

$1.37M

@ $455.53 · 2024-11-11

MORRIS KEVIN SCOTT

General Counsel

$91,800

@ $459.00 · 2024-11-11

GOLDMAN JAMES A

Director

$228,330

@ $430.00 · 2024-11-04

HEADEN CYNTHIA A.

Officer

$150,500

@ $430.00 · 2024-11-01

BALSON ANDREW B

Director

$2.99M

@ $428.27 · 2024-10-15

BALLARD CHARLES ANDREW

Director

$95,453

@ $446.04 · 2024-08-15

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Sells (3M)

Sells (12M)

Total value (12M): $70.42M

GROSSMAN ERIC F

Officer

$2.12M

@ $190.75 · 2026-04-20

SIMKOWITZ DANIEL A

President

$2.78M

@ $189.24 · 2026-04-17

CRAWLEY MANDELL L.

Officer

$3.04M

@ $188.22 · 2026-04-16

SAPERSTEIN ANDREW MICHAEL

President

$9.74M

@ $188.59 · 2026-04-16

SIMKOWITZ DANIEL A

President

$6.02M

@ $182.61 · 2026-01-30

CRAWLEY MANDELL L.

Officer

$1.44M

@ $183.45 · 2026-01-20

YESHAYA SHARON

Chief Financial Officer

$2.94M

@ $185.77 · 2026-01-20

SMITH CHARLES AUBREY III

Officer

$1.55M

@ $182.08 · 2026-01-20

SAPERSTEIN ANDREW MICHAEL

President

$5.57M

@ $183.62 · 2026-01-20

GROSSMAN ERIC F

Officer

$3.97M

@ $184.00 · 2026-01-20

PIZZI MICHAEL A

Officer

$3.69M

@ $184.55 · 2026-01-20

PICK EDWARD N.

Chief Executive Officer

$16.43M

@ $164.34 · 2025-10-31

SMITH CHARLES AUBREY III

Officer

$2.81M

@ $140.30 · 2025-07-17

SIMKOWITZ DANIEL A

President

$4.09M

@ $141.13 · 2025-07-17

GROSSMAN ERIC F

Officer

$1.69M

@ $141.12 · 2025-07-17

PIZZI MICHAEL A

Officer

$2.53M

@ $140.62 · 2025-07-17

SIMKOWITZ DANIEL A

President

$3.70M

@ $127.37 · 2025-05-12

HERZ ROBERT H

Director

$95,459

@ $119.32 · 2025-05-02

SAPERSTEIN ANDREW MICHAEL

President

$4.80M

@ $120.00 · 2025-05-02

GROSSMAN ERIC F

Officer

$1.12M

@ $111.65 · 2025-04-15

CRAWLEY MANDELL L.

Officer

$1.15M

@ $138.06 · 2025-01-22

SAPERSTEIN ANDREW MICHAEL

President

$4.20M

@ $136.43 · 2025-01-21

SIMKOWITZ DANIEL A

President

$5.00M

@ $136.61 · 2025-01-21

AKRAM RAJA

Chief Financial Officer

$2.38M

@ $136.01 · 2025-01-21

GROSSMAN ERIC F

Officer

$1.78M

@ $136.20 · 2025-01-21

PIZZI MICHAEL A

Officer

$2.52M

@ $136.92 · 2025-01-21

CRAWLEY MANDELL L.

Officer

$368,375

@ $105.25 · 2024-07-26

AKRAM RAJA

Officer

$797,764

@ $106.37 · 2024-07-18

HERZ ROBERT H

Director

$106,621

@ $106.62 · 2024-07-17

SIMKOWITZ DANIEL A

President

$4.26M

@ $106.54 · 2024-07-17

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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DPZ

😨Fear(31/100)

"Market is pessimistic — investigate whether fears are temporary or structural"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

😏Greed(70/100)

"Market is optimistic — be cautious and ensure you have a margin of safety"

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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DPZ

⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Fear (31)

⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Greed (70)

View DPZ Full Analysis View MS Full Analysis

Frequently Asked Questions: DPZ vs MS

Is Domino's Pizza, Inc. or Morgan Stanley more undervalued in 2026?▼

Based on our discounted cash flow model, MS trades at a 25.0% margin of safety (intrinsic value $298 vs. price $223), compared to DPZ's -14.3% margin of safety (intrinsic $273 vs. $312).

Which stock has a wider economic moat, Domino's Pizza, Inc. or Morgan Stanley?▼

DPZ scores 91/100 (Wide moat), while MS scores 80/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Morgan Stanley in financial distress?▼

MS's Altman Z-Score of 0.3 places it in the Distress zone, signaling elevated bankruptcy risk. DPZ scores 3.3 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which stock has higher return on invested capital, Domino's Pizza, Inc. or Morgan Stanley?▼

DPZ earns 14.8% ROIC versus MS's 3.4%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

Which dividend is safer, Domino's Pizza, Inc.'s or Morgan Stanley's?▼

DPZ's dividend earns a safety score of 94/100 (Very Safe), compared to MS's 79/100 (Safe). DPZ has raised its dividend for 3 consecutive years.