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"Execution is something professional money managers always want to see in a stock," Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

However, it can be tricky to compare companies with good execution vs. those with bad execution, he said. The best demonstration of execution is almost always in restaurants and retail, where execution is everything, he added.

Consider Domino's Pizza ( DPZ - Get Report) and Papa John's International ( PZZA - Get Report), Cramer said. "They're both in the same business, but one blows up and one gives us good execution."

Domino's was crying about how hard the environment is, while Papa John's did not complain and instead, on Nov. 6, beat its earnings estimates and raised its forecast, he said. Meanwhile, Domino's announced less than stellar estimates.

Both pizza companies have long-term growth rates, but Papa John's has a higher multiple because of numbers that are bankable, Cramer explained. It also has better visibility, which is "a multiple enhancer."

The multiple for Domino's, on the other hand, can't be as good because Domino's complained about the environment and didn't deliver good numbers, he said.

To determine the stock price of a company, investors must find out what the earnings will be and multiply them by the multiple, Cramer told viewers. In the case of Domino's vs. Papa John's, even if the earnings stay the same, Papa John's higher multiple means its stock deserves a higher price.

Good execution is a key to a company's stock price going higher, and here it is evident that Papa John's is the winner, Cramer said.

Taking Control of Your Own Destiny

The Street is hunting for good execution all the time, because it tends to trust management that consistently delivers, Cramer told viewers.

Another comparison Cramer used to show the importance of good execution is CVS Caremark ( CVS - Get Report), which Cramer owns for his charitable trust, Action Alerts PLUS, and Walgreen ( WAG).

Not too long ago, there was a consensus that Walgreen was infallible and CVS was just a respectable, second-place competitor, Cramer said. But then, he noted, CVS realized that there was extra money to be made by drugs that come off patent. He said the retailer bought Caremark and acquired all the "very visible profits" that will come from the company through 2012.

The move illustrates how CVS took control of its own destiny and gained an edge over its competition, Cramer said. Meanwhile, Walgreen was content to sit back and take what came in.

CVS realized it wanted growth from drugs going generic, and ultimately its execution translated into better numbers. Now, CVS has better stores and has become the "top dog," he said.

Am I Diversified?

During the "Am I Diversified?" round, the first player called out the following five plays: Intuitive Surgical ( ISRG), Precision Castparts ( PCP), Google ( GOOG), Cisco ( CSCO) and Procter & Gamble ( PG).

"I say hallelujah," was Cramer's response. "I would buy every single one of those stocks."

The second caller asked if he was diversified with these five stocks: Ford ( F), Hovnanian ( HOV), Celgene ( CELG), E*Trade ( ETFC) and ValueClick ( VCLK).

While Cramer called the portfolio "perfectly diversified," he said the caller was in the house of pain. He suggested the player keep Celgene and maybe ValueClick, but sell the others.

"This is a tough portfolio and I don't want you to stand still," Cramer said.

The next player's portfolio was made up of the following five holdings: JPMorgan ( JPM), Johnson & Johnson ( JNJ), Exxon Mobil ( XOM), Altria ( MO) and Caterpillar ( CAT), the latter two of which Cramer owns for his charitable trust.

Cramer told the player he had a "picture perfect" portfolio.

The final caller said she owned these five names: Yamana Gold ( AUY), BPZ Resources ( BZP), Triple-S Management ( GTS), Intel ( INTC - Get Report) and NightHawk ( NHWK).

Cramer saluted the portfolio and told the caller she was diversified.

Mad Mail

During the "Mad Mail" segment, Cramer told an emailer that while he doesn't like the fact that Shaw Group ( SGR) CEO J. Bernhard is selling shares of the company, he likes Shaw Group, and the stock was up three points today.

Lightning Round

Cramer was bullish on Guess? ( GES - Get Report), J. Crew ( JCG), Molson Coors Brewing ( TAP - Get Report), Thompson Creek ( TC), Intel ( INTC - Get Report), Schering-Plough ( SGP), Magna ( MGA), Johnson Controls ( JCI), MEMC Electronic Materials ( WFR), First Solar ( FSLR), Copart ( CPRT), Koppers Holdings ( KOP), Oshkosh Truck ( OSK) and Goldman Sachs ( GS).

Cramer was bearish on American Apparel ( APP), Anheuser-Busch ( BUD), Advanced Micro Devices ( AMD - Get Report), Pacific Ethanol ( PEIX - Get Report), Spartan Motors ( SPAR - Get Report) and Force Protection ( FRPT - Get Report).

Want more Cramer? Check out Jim's rules and commandments for investing by clicking here.

For more of Cramer's insights during the Lightning Round, click here .

At the time of publication, Cramer was long CVS Caremark, Altria, Goldman Sachs, Caterpillar and Schering-Plough.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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