DRI vs. TXRH, YUM, YUMC, QSR, WING, CAVA, DPZ, ULTA, BBY, and DKS
Should you be buying Darden Restaurants stock or one of its competitors? The main competitors of Darden Restaurants include Texas Roadhouse (TXRH), Yum! Brands (YUM), Yum China (YUMC), Restaurant Brands International (QSR), Wingstop (WING), CAVA Group (CAVA), Domino's Pizza (DPZ), Ulta Beauty (ULTA), Best Buy (BBY), and DICK'S Sporting Goods (DKS). These companies are all part of the "retail/wholesale" sector.
Darden Restaurants (NYSE:DRI) and Texas Roadhouse (NASDAQ:TXRH) 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, analyst recommendations, valuation, community ranking, media sentiment, dividends, risk, profitability and institutional ownership.
Darden Restaurants has a net margin of 9.24% compared to Texas Roadhouse's net margin of 6.94%. Darden Restaurants' return on equity of 49.94% beat Texas Roadhouse's return on equity.
Darden Restaurants has higher revenue and earnings than Texas Roadhouse. Darden Restaurants is trading at a lower price-to-earnings ratio than Texas Roadhouse, indicating that it is currently the more affordable of the two stocks.
Darden Restaurants has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Texas Roadhouse has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.
Darden Restaurants pays an annual dividend of $5.24 per share and has a dividend yield of 3.5%. Texas Roadhouse pays an annual dividend of $2.44 per share and has a dividend yield of 1.4%. Darden Restaurants pays out 61.4% of its earnings in the form of a dividend. Texas Roadhouse pays out 49.4% 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 554 more outperform votes than Texas Roadhouse when rated by MarketBeat users. Likewise, 66.59% of users gave Darden Restaurants an outperform vote while only 53.56% of users gave Texas Roadhouse an outperform vote.
Darden Restaurants currently has a consensus price target of $177.95, indicating a potential upside of 19.46%. Texas Roadhouse has a consensus price target of $157.32, indicating a potential downside of 8.49%. Given Darden Restaurants' stronger consensus rating and higher possible upside, research analysts plainly believe Darden Restaurants is more favorable than Texas Roadhouse.
In the previous week, Texas Roadhouse had 1 more articles in the media than Darden Restaurants. MarketBeat recorded 18 mentions for Texas Roadhouse and 17 mentions for Darden Restaurants. Texas Roadhouse's average media sentiment score of 0.97 beat Darden Restaurants' score of 0.66 indicating that Texas Roadhouse is being referred to more favorably in the news media.
93.6% of Darden Restaurants shares are owned by institutional investors. Comparatively, 94.8% of Texas Roadhouse shares are owned by institutional investors. 0.9% of Darden Restaurants shares are owned by company insiders. Comparatively, 0.5% of Texas Roadhouse shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Darden Restaurants beats Texas Roadhouse on 13 of the 20 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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