YUM vs. DRI, TXRH, CMG, QSR, YUMC, WING, KR, FAST, CPNG, and ROST
Should you be buying Yum! Brands stock or one of its competitors? The main competitors of Yum! Brands include Darden Restaurants (DRI), Texas Roadhouse (TXRH), Chipotle Mexican Grill (CMG), Restaurant Brands International (QSR), Yum China (YUMC), Wingstop (WING), Kroger (KR), Fastenal (FAST), Coupang (CPNG), and Ross Stores (ROST). These companies are all part of the "retail/wholesale" sector.
Yum! Brands (NYSE:YUM) and Darden Restaurants (NYSE:DRI) are both large-cap retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, community ranking, institutional ownership, media sentiment, risk, valuation, dividends, profitability and analyst recommendations.
Yum! Brands pays an annual dividend of $2.68 per share and has a dividend yield of 2.0%. Darden Restaurants pays an annual dividend of $5.24 per share and has a dividend yield of 3.6%. Yum! Brands pays out 47.5% of its earnings in the form of a dividend. Darden Restaurants pays out 61.4% 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.
Yum! Brands has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Darden Restaurants has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.
Yum! Brands has higher earnings, but lower revenue 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.
82.4% of Yum! Brands shares are held by institutional investors. Comparatively, 93.6% of Darden Restaurants shares are held by institutional investors. 0.3% of Yum! Brands shares are held by company insiders. Comparatively, 0.9% of Darden Restaurants shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
In the previous week, Darden Restaurants had 2 more articles in the media than Yum! Brands. MarketBeat recorded 16 mentions for Darden Restaurants and 14 mentions for Yum! Brands. 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 news media.
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.
Yum! Brands currently has a consensus price target of $143.27, suggesting a potential upside of 6.36%. Darden Restaurants has a consensus price target of $177.95, suggesting a potential upside of 21.86%. Given Darden Restaurants' stronger consensus rating and higher probable upside, analysts clearly believe Darden Restaurants is more favorable than Yum! Brands.
Summary
Darden Restaurants beats Yum! Brands on 14 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding YUM 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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