BBY vs. DRI, QSR, EXPE, BURL, DKS, BLDR, DPZ, FIVE, MTCH, and EBAY
Should you be buying Best Buy stock or one of its competitors? The main competitors of Best Buy include Darden Restaurants (DRI), Restaurant Brands International (QSR), Expedia Group (EXPE), Burlington Stores (BURL), DICK'S Sporting Goods (DKS), Builders FirstSource (BLDR), Domino's Pizza (DPZ), Five Below (FIVE), Match Group (MTCH), and eBay (EBAY). These companies are all part of the "retail/wholesale" sector.
Best Buy vs.
Darden Restaurants (NYSE:DRI) and Best Buy (NYSE:BBY) are both large-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, community ranking, institutional ownership, media sentiment, dividends, risk, analyst recommendations, earnings and valuation.
Darden Restaurants currently has a consensus price target of $160.23, indicating a potential upside of 3.73%. Best Buy has a consensus price target of $81.44, indicating a potential upside of 11.07%. Given Best Buy's higher possible upside, analysts plainly believe Best Buy is more favorable than Darden Restaurants.
In the previous week, Darden Restaurants had 79 more articles in the media than Best Buy. MarketBeat recorded 96 mentions for Darden Restaurants and 17 mentions for Best Buy. Darden Restaurants' average media sentiment score of 0.56 beat Best Buy's score of 0.33 indicating that Darden Restaurants is being referred to more favorably in the media.
Best Buy has higher revenue and earnings than Darden Restaurants. Best Buy is trading at a lower price-to-earnings ratio than Darden Restaurants, indicating that it is currently the more affordable of the two stocks.
Darden Restaurants pays an annual dividend of $4.84 per share and has a dividend yield of 3.1%. Best Buy pays an annual dividend of $3.68 per share and has a dividend yield of 5.0%. Darden Restaurants pays out 63.2% of its earnings in the form of a dividend. Best Buy pays out 58.5% 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 has raised its dividend for 2 consecutive years and Best Buy has raised its dividend for 20 consecutive years. Best Buy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Darden Restaurants has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Best Buy has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.
Darden Restaurants has a net margin of 9.19% compared to Best Buy's net margin of 3.06%. Best Buy's return on equity of 55.81% beat Darden Restaurants' return on equity.
89.2% of Darden Restaurants shares are owned by institutional investors. Comparatively, 78.5% of Best Buy shares are owned by institutional investors. 0.9% of Darden Restaurants shares are owned by company insiders. Comparatively, 0.4% of Best Buy shares are owned 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.
Best Buy received 459 more outperform votes than Darden Restaurants when rated by MarketBeat users. Likewise, 74.69% of users gave Best Buy an outperform vote while only 67.26% of users gave Darden Restaurants an outperform vote.
Summary
Best Buy beats Darden Restaurants on 11 of the 21 factors compared between the two stocks.
New MarketBeat Followers Over Time
This chart shows the number of new MarketBeat users adding BBY and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Media Sentiment Over Time
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.
Best Buy Competitors List
