YUM vs. DRI, CMG, YUMC, QSR, ROST, DG, KR, AZO, FAST, and DLTR
Should you be buying Yum! Brands stock or one of its competitors? The main competitors of Yum! Brands include Darden Restaurants (DRI), Chipotle Mexican Grill (CMG), Yum China (YUMC), Restaurant Brands International (QSR), Ross Stores (ROST), Dollar General (DG), Kroger (KR), AutoZone (AZO), Fastenal (FAST), and Dollar Tree (DLTR). These companies are all part of the "retail/wholesale" sector.
Yum! Brands vs.
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 dividends, analyst recommendations, risk, profitability, institutional ownership, media sentiment, community ranking, valuation and earnings.
Yum! Brands pays an annual dividend of $2.42 per share and has a dividend yield of 1.8%. Darden Restaurants pays an annual dividend of $4.84 per share and has a dividend yield of 3.0%. Yum! Brands pays out 56.9% of its earnings in the form of a dividend. Darden Restaurants pays out 63.2% 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.
Yum! Brands has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Darden Restaurants has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500.
Yum! Brands has a net margin of 17.67% compared to Darden Restaurants' net margin of 9.19%. Darden Restaurants' return on equity of 45.62% beat Yum! Brands' return on equity.
In the previous week, Yum! Brands had 1 more articles in the media than Darden Restaurants. MarketBeat recorded 16 mentions for Yum! Brands and 15 mentions for Darden Restaurants. Darden Restaurants' average media sentiment score of 0.56 beat Yum! Brands' score of 0.40 indicating that Darden Restaurants is being referred to more favorably in the news media.
Darden Restaurants received 38 more outperform votes than Yum! Brands when rated by MarketBeat users. Likewise, 67.22% of users gave Darden Restaurants an outperform vote while only 65.77% of users gave Yum! Brands an outperform vote.
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.
Yum! Brands currently has a consensus target price of $147.11, suggesting a potential upside of 10.25%. Darden Restaurants has a consensus target price of $160.62, suggesting a potential downside of 0.84%. Given Yum! Brands' higher possible upside, research analysts clearly believe Yum! Brands is more favorable than Darden Restaurants.
77.5% of Yum! Brands shares are held by institutional investors. Comparatively, 89.2% of Darden Restaurants shares are held by institutional investors. 0.3% of Yum! Brands shares are held by insiders. Comparatively, 0.9% of Darden Restaurants shares are held by 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 Yum! Brands on 12 of the 20 factors compared between the two stocks.
New MarketBeat Followers Over Time
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.
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.
Yum! Brands Competitors List
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