If you were sent back in time to 2004 and had the choice to buy Domino’s Pizza (DPZ) or Alphabet (GOOGL) at their IPO, which would have been the better choice?  Due to the epic size and influence of its business, impulse would probably have you choose Alphabet.  But DPZ has actually seen significantly better returns than GOOGL since the companies’ IPO dates. Since inception, DPZ has seen a total return of 3,604% even after today’s 9.03% decline in the stock in reaction to an earnings miss this morning.  Not that GOOGL’s 2,490% return is something to turn your nose at, but it is dwarfed by DPZ’s returns.  For the stocks’ first decade, up until 2014, this was not the case though.  GOOGL had actually outperformed DPZ for much of their lifespans as public companies.  From then up until early 2016, the two stocks alternated between being the leader, but in the last two years, Domino’s ran away with things.  Part of the reason for this is DPZ has fairly consistently paid a dividend since 2004 which is why returns for the stock have been considerably better over the long term.

Print Friendly, PDF & Email