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

As of 2026-08-03, DPZ is overvalued at $347, with a DCF intrinsic value of $290 and a margin of safety of -20%. MS is undervalued at $210, with an intrinsic value of $269 and a margin of safety of 22%. Of the two, MS has the wider margin of safety.

DPZ
Domino's Pizza Inc
$347.44
VS
MS
Morgan Stanley
$210.42

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.
MS
  • ★Gross margin of 87.6% 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
  • ⚠Net debt/EBITDA of 4.8x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.
  • ⚠6 insider sales totaling $9.7M with no purchases in the past 3 months — insiders are reducing their exposure.
MS
  • ⚠Altman Z-Score of 0.29 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
  • ⚠Insiders have sold $5.4M worth of stock in the past 3 months — significant insider liquidation.

Key Valuation Metrics

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DPZ
MS
Valuation
$531.50M
Free Cash Flow
N/A
4.62%
FCF Yield
N/A
19.68
Trailing P/E
17.01
16.63
Forward P/E
15.45
Quality & Moat
14.80%
ROIC
3.68%
N/A
ROE
14.08%
28.71%
Gross Margin
87.64%
1.74
PEG Ratio
1.99
Balance Sheet Safety
N/A
Net Debt / Equity
Net cash
N/A
Interest Coverage
N/A
4.84
Net Debt / EBITDA
N/A
2.29%
Dividend Yield
2.19%
DPZ: 2Ties: 2MS: 3
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.

MS

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.

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
MS
$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

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
19.7% Overvalued
Price is 19.7% above estimated fair value
Current Price: $347.44
Fair Value: $290.35
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
MS
21.9% Margin of Safety
Price is 21.9% below estimated fair value
Current Price: $210.42
Fair Value: $269.50
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 $347?

+12.0%
Market-Implied Owner Earnings Growth
Standard FCF implies +13.6%

The market implies +12.0% Owner Earnings growth, roughly in line with history — reasonably priced.

Standard FCF implies +13.6%, reflecting ongoing growth investment.

MS

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.
MS
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.

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.

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.
MS
-2.09
Possible 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.

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.

Ownership Breakdown

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DPZ
Insiders 0.5%Institutions 111.9%
No. of Institutional Holders1,101
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.
MS
Insiders 24.4%Institutions 63.1%Retail & Other 12.5%
No. of Institutional Holders3,329
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.

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
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
MS
0
Buys (3M)
1
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
6
Sells (3M)
14
Sells (12M)
Total value (12M): $14.67M
GARCIA KELLY E
Chief Technology Officer
$4.00M
@ $322.04 · 2026-07-22
WEINER RUSSELL J
Chief Executive Officer
$3.59M
@ $330.83 · 2026-07-17
JORDAN JOSEPH HUGH
Chief Operating Officer
$1.70M
@ $311.29 · 2026-07-16
GARCIA KELLY E
Chief Technology Officer
$144,644
@ $297.01 · 2026-07-09
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
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
$220,823
@ $394.33 · 2026-03-13
HEADEN CYNTHIA A.
Officer
$697,302
@ $399.60 · 2026-03-11
PARRISH JESSICA L
Officer
$228,172
@ $399.60 · 2026-03-11
REDDY SANDEEP
Chief Financial Officer
$1.18M
@ $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
HEADEN CYNTHIA A.
Officer
$384,568
@ $433.56 · 2025-03-12
REDDY SANDEEP
Chief Financial Officer
$109,691
@ $433.56 · 2025-03-12
GARCIA KELLY E
Chief Technology Officer
$917,923
@ $436.28 · 2025-03-11
REDDY SANDEEP
Chief Financial Officer
$477,326
@ $443.20 · 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
MORRIS KEVIN SCOTT
General Counsel
$91,800
@ $459.00 · 2024-11-11
CANTOR DIANA F
Director
$1.37M
@ $455.53 · 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
MS
2
Sells (3M)
14
Sells (12M)
Total value (12M): $64.71M
SCHAPIRO MARY L
Director
$212,055
@ $212.06 · 2026-07-28
PIZZI MICHAEL A
Officer
$5.21M
@ $215.55 · 2026-07-17
GROSSMAN ERIC F
Officer
$2.12M
@ $190.75 · 2026-04-20
SIMKOWITZ DANIEL A
President
$2.78M
@ $189.24 · 2026-04-17
SAPERSTEIN ANDREW MICHAEL
President
$9.74M
@ $188.59 · 2026-04-16
CRAWLEY MANDELL L.
Officer
$3.04M
@ $188.22 · 2026-04-16
SIMKOWITZ DANIEL A
President
$6.02M
@ $182.61 · 2026-01-30
PIZZI MICHAEL A
Officer
$3.69M
@ $184.55 · 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
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
PICK EDWARD N.
Chief Executive Officer
$16.43M
@ $164.34 · 2025-10-31
PIZZI MICHAEL A
Officer
$2.53M
@ $140.62 · 2025-07-17
GROSSMAN ERIC F
Officer
$1.69M
@ $141.12 · 2025-07-17
SMITH CHARLES AUBREY III
Officer
$2.81M
@ $140.30 · 2025-07-17
SIMKOWITZ DANIEL A
President
$4.09M
@ $141.13 · 2025-07-17
SIMKOWITZ DANIEL A
President
$3.70M
@ $127.37 · 2025-05-12
SAPERSTEIN ANDREW MICHAEL
President
$4.80M
@ $120.00 · 2025-05-02
HERZ ROBERT H
Director
$95,459
@ $119.32 · 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
PIZZI MICHAEL A
Officer
$2.52M
@ $136.92 · 2025-01-21
SAPERSTEIN ANDREW MICHAEL
President
$4.20M
@ $136.43 · 2025-01-21
GROSSMAN ERIC F
Officer
$1.78M
@ $136.20 · 2025-01-21
AKRAM RAJA
Chief Financial Officer
$2.38M
@ $136.01 · 2025-01-21
SIMKOWITZ DANIEL A
President
$5.00M
@ $136.61 · 2025-01-21
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
FearGreed
😐Neutral(42/100)

"Market is pricing this stock without strong emotion in either direction"

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.
MS
FearGreed
😐Neutral(57/100)

"Market is pricing this stock without strong emotion in either direction"

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.

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: Neutral (42)
MS
⚪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: Neutral (57)
View DPZ Full AnalysisView 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 21.9% margin of safety (intrinsic value $269 vs. price $210), compared to DPZ's -19.7% margin of safety (intrinsic $290 vs. $347).

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 3.7%. 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.