DRI vs. TXRH, YUM, CMG, QSR, YUMC, WING, WBA, BLDR, ULTA, and BBY
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), Chipotle Mexican Grill (CMG), Restaurant Brands International (QSR), Yum China (YUMC), Wingstop (WING), Walgreens Boots Alliance (WBA), Builders FirstSource (BLDR), Ulta Beauty (ULTA), and Best Buy (BBY).
Darden Restaurants vs.
Darden Restaurants (NYSE:DRI) and Texas Roadhouse (NASDAQ:TXRH) are both consumer cyclical companies, but which is the superior business? We will compare the two businesses based on the strength of their community ranking, analyst recommendations, dividends, media sentiment, risk, institutional ownership, profitability, valuation and earnings.
In the previous week, Darden Restaurants had 62 more articles in the media than Texas Roadhouse. MarketBeat recorded 64 mentions for Darden Restaurants and 2 mentions for Texas Roadhouse. Texas Roadhouse's average media sentiment score of 0.42 beat Darden Restaurants' score of 0.35 indicating that Texas Roadhouse is being referred to more favorably in the news media.
Darden Restaurants has a net margin of 9.13% compared to Texas Roadhouse's net margin of 6.69%. Darden Restaurants' return on equity of 47.87% beat Texas Roadhouse's return on equity.
Darden Restaurants has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, Texas Roadhouse has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.
Darden Restaurants received 546 more outperform votes than Texas Roadhouse when rated by MarketBeat users. Likewise, 66.28% of users gave Darden Restaurants an outperform vote while only 53.91% of users gave Texas Roadhouse an outperform vote.
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.
94.5% of Darden Restaurants shares are owned by institutional investors. Comparatively, 97.2% of Texas Roadhouse shares are owned by institutional investors. 0.9% of Darden Restaurants shares are owned by insiders. Comparatively, 0.5% of Texas Roadhouse shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments 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 3.7%. Texas Roadhouse pays an annual dividend of $2.20 per share and has a dividend yield of 2.3%. Darden Restaurants pays out 65.3% of its earnings in the form of a dividend. Texas Roadhouse pays out 50.9% 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 currently has a consensus price target of $169.27, indicating a potential upside of 17.96%. Texas Roadhouse has a consensus price target of $118.45, indicating a potential upside of 23.88%. Given Texas Roadhouse's higher possible upside, analysts plainly believe Texas Roadhouse is more favorable than Darden Restaurants.
Summary
Darden Restaurants beats Texas Roadhouse on 14 of the 20 factors compared between the two stocks.
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New MarketBeat Followers Over Time
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.
Skip ChartMedia 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.
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