YUMC vs. DRI, TXRH, WING, CAVA, QSR, SG, YUM, WBA, DKS, and BBY
Should you be buying Yum China stock or one of its competitors? The main competitors of Yum China include Darden Restaurants (DRI), Texas Roadhouse (TXRH), Wingstop (WING), CAVA Group (CAVA), Restaurant Brands International (QSR), Sweetgreen (SG), Yum! Brands (YUM), Walgreens Boots Alliance (WBA), DICK'S Sporting Goods (DKS), and Best Buy (BBY). These companies are all part of the "retail/wholesale" sector.
Darden Restaurants (NYSE:DRI) and Yum China (NYSE:YUMC) are both large-cap retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, community ranking, media sentiment, dividends, profitability and analyst recommendations.
Darden Restaurants has a net margin of 9.24% compared to Darden Restaurants' net margin of 7.49%. Yum China's return on equity of 49.94% beat Darden Restaurants' return on equity.
93.6% of Darden Restaurants shares are held by institutional investors. Comparatively, 85.6% of Yum China shares are held by institutional investors. 0.9% of Darden Restaurants shares are held by company insiders. Comparatively, 0.3% of Yum China shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Darden Restaurants pays an annual dividend of $5.24 per share and has a dividend yield of 3.5%. Yum China pays an annual dividend of $0.64 per share and has a dividend yield of 1.8%. Darden Restaurants pays out 61.4% of its earnings in the form of a dividend. Yum China pays out 32.2% 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 has raised its dividend for 3 consecutive years and Yum China has raised its dividend for 4 consecutive years.
Darden Restaurants has higher earnings, but lower revenue than Yum China. Darden Restaurants is trading at a lower price-to-earnings ratio than Yum China, indicating that it is currently the more affordable of the two stocks.
Darden Restaurants currently has a consensus price target of $177.95, suggesting a potential upside of 19.46%. Yum China has a consensus price target of $54.65, suggesting a potential upside of 54.77%. Given Darden Restaurants' higher possible upside, analysts clearly believe Yum China is more favorable than Darden Restaurants.
Darden Restaurants received 737 more outperform votes than Yum China when rated by MarketBeat users. Likewise, 66.59% of users gave Darden Restaurants an outperform vote while only 64.19% of users gave Yum China an outperform vote.
In the previous week, Darden Restaurants had 1 more articles in the media than Yum China. MarketBeat recorded 17 mentions for Darden Restaurants and 16 mentions for Yum China. Yum China's average media sentiment score of 0.66 beat Darden Restaurants' score of 0.42 indicating that Darden Restaurants is being referred to more favorably in the media.
Darden Restaurants has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Yum China has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.
Summary
Darden Restaurants beats Yum China on 16 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding YUMC 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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