DRI vs. YUM, DPZ, TXRH, WEN, EAT, CAKE, BLMN, PZZA, JACK, and CBRL
Should you be buying Darden Restaurants stock or one of its competitors? The main competitors of Darden Restaurants include Yum! Brands (YUM), Domino's Pizza (DPZ), Texas Roadhouse (TXRH), Wendy's (WEN), Brinker International (EAT), Cheesecake Factory (CAKE), Bloomin' Brands (BLMN), Papa John's International (PZZA), Jack in the Box (JACK), and Cracker Barrel Old Country Store (CBRL). These companies are all part of the "restaurants" industry.
Darden Restaurants (NYSE:DRI) and Yum! Brands (NYSE:YUM) are both large-cap retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, community ranking, analyst recommendations, earnings and media sentiment.
Yum! Brands has a net margin of 22.92% compared to Darden Restaurants' net margin of 9.24%. Darden Restaurants' return on equity of 49.94% beat Yum! Brands' return on equity.
In the previous week, Darden Restaurants and Darden Restaurants both had 15 articles in the media. Darden Restaurants' average media sentiment score of 0.67 beat Yum! Brands' score of 0.61 indicating that Darden Restaurants is being referred to more favorably in the media.
Yum! Brands has lower revenue, but higher earnings than Darden Restaurants. Darden Restaurants is trading at a lower price-to-earnings ratio than Yum! Brands, indicating that it is currently the more affordable of the two stocks.
93.6% of Darden Restaurants shares are held by institutional investors. Comparatively, 82.4% of Yum! Brands shares are held by institutional investors. 0.9% of Darden Restaurants shares are held by insiders. Comparatively, 0.3% of Yum! Brands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Darden Restaurants currently has a consensus target price of $177.95, indicating a potential upside of 20.56%. Yum! Brands has a consensus target price of $143.27, indicating a potential upside of 6.34%. Given Darden Restaurants' stronger consensus rating and higher possible upside, research analysts plainly believe Darden Restaurants is more favorable than Yum! Brands.
Darden Restaurants has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Yum! Brands has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.
Darden Restaurants pays an annual dividend of $5.24 per share and has a dividend yield of 3.5%. Yum! Brands pays an annual dividend of $2.68 per share and has a dividend yield of 2.0%. Darden Restaurants pays out 61.4% of its earnings in the form of a dividend. Yum! Brands pays out 47.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Darden Restaurants received 57 more outperform votes than Yum! Brands when rated by MarketBeat users. Likewise, 66.59% of users gave Darden Restaurants an outperform vote while only 65.30% of users gave Yum! Brands an outperform vote.
Summary
Darden Restaurants beats Yum! Brands on 13 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding DRI and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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