DRI vs. TXRH, YUM, YUMC, QSR, WING, CAVA, DPZ, DKS, 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), Yum China (YUMC), Restaurant Brands International (QSR), Wingstop (WING), CAVA Group (CAVA), Domino's Pizza (DPZ), DICK'S Sporting Goods (DKS), Ulta Beauty (ULTA), and Best Buy (BBY). These companies are all part of the "retail/wholesale" sector.
Texas Roadhouse (NASDAQ:TXRH) and Darden Restaurants (NYSE:DRI) are both large-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, media sentiment, community ranking, profitability, institutional ownership, earnings and valuation.
Texas Roadhouse currently has a consensus price target of $155.55, suggesting a potential downside of 7.95%. Darden Restaurants has a consensus price target of $178.67, suggesting a potential upside of 17.99%. Given Texas Roadhouse's stronger consensus rating and higher probable upside, analysts clearly believe Darden Restaurants is more favorable than Texas Roadhouse.
In the previous week, Darden Restaurants had 3 more articles in the media than Texas Roadhouse. MarketBeat recorded 14 mentions for Darden Restaurants and 11 mentions for Texas Roadhouse. Darden Restaurants' average media sentiment score of 0.84 beat Texas Roadhouse's score of 0.64 indicating that Texas Roadhouse is being referred to more favorably in the media.
94.8% of Texas Roadhouse shares are owned by institutional investors. Comparatively, 93.6% of Darden Restaurants shares are owned by institutional investors. 0.5% of Texas Roadhouse shares are owned by company insiders. Comparatively, 0.9% of Darden Restaurants shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Darden Restaurants received 553 more outperform votes than Texas Roadhouse when rated by MarketBeat users. Likewise, 66.57% of users gave Darden Restaurants an outperform vote while only 53.61% of users gave Texas Roadhouse an outperform vote.
Texas Roadhouse has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Darden Restaurants has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.
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 net margin of 9.24% compared to Darden Restaurants' net margin of 6.94%. Texas Roadhouse's return on equity of 49.94% beat Darden Restaurants' return on equity.
Texas Roadhouse pays an annual dividend of $2.44 per share and has a dividend yield of 1.4%. Darden Restaurants pays an annual dividend of $5.24 per share and has a dividend yield of 3.5%. Texas Roadhouse pays out 49.4% of its earnings in the form of a dividend. Darden Restaurants pays out 61.4% 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. Texas Roadhouse has increased its dividend for 5 consecutive years and Darden Restaurants has increased its dividend for 3 consecutive years.
Summary
Darden Restaurants beats Texas Roadhouse on 14 of the 21 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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