Analyzing Darden Restaurants (NYSE:DRI) and MakeMyTrip (NASDAQ:MMYT)

Darden Restaurants (NYSE:DRI) and MakeMyTrip (NASDAQ:MMYT) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Insider and Institutional Ownership

93.6% of Darden Restaurants shares are owned by institutional investors. Comparatively, 51.9% of MakeMyTrip shares are owned by institutional investors. 0.7% of Darden Restaurants shares are owned by insiders. Comparatively, 10.3% of MakeMyTrip shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Darden Restaurants has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, MakeMyTrip has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Earnings & Valuation

This table compares Darden Restaurants and MakeMyTrip”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Darden Restaurants	$13.21 billion	1.79	$1.21 billion	$10.38	19.98
MakeMyTrip	$1.04 billion	4.40	$51.80 million	$0.12	407.37

Darden Restaurants has higher revenue and earnings than MakeMyTrip. Darden Restaurants is trading at a lower price-to-earnings ratio than MakeMyTrip, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Darden Restaurants and MakeMyTrip, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Darden Restaurants	0	9	18	0	2.67
MakeMyTrip	0	2	5	0	2.71

Darden Restaurants currently has a consensus price target of $230.50, suggesting a potential upside of 11.14%. MakeMyTrip has a consensus price target of $86.75, suggesting a potential upside of 77.46%. Given MakeMyTrip’s stronger consensus rating and higher possible upside, analysts plainly believe MakeMyTrip is more favorable than Darden Restaurants.

Profitability

This table compares Darden Restaurants and MakeMyTrip’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Darden Restaurants	9.13%	57.44%	9.62%
MakeMyTrip	3.23%	-632.52%	8.31%

Summary

Darden Restaurants beats MakeMyTrip on 8 of the 14 factors compared between the two stocks.

About Darden Restaurants

Darden Restaurants, Inc., together with its subsidiaries, owns and operates full-service restaurants in the United States and Canada. It operates under Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V’s Prime Seafood, and Capital Burger brand names. Darden Restaurants, Inc. was incorporated in 1995 and is based in Orlando, Florida.

About MakeMyTrip

MakeMyTrip Limited, an online travel company, sells travel products and solutions in India, the United States, Singapore, Malaysia, Thailand, the United Arab Emirates, Peru, Colombia, Vietnam, and Indonesia. The company operates through three segments: Air Ticketing, Hotels and Packages, and Bus Ticketing. Its services and products include air tickets; hotels and packages; rail tickets; bus tickets; and car hire, as well as ancillary travel requirements, such as visa processing and facilitating access to travel insurance. The company allows travelers to research, plan, book, and purchase travel services and products through its websites, such as makemytrip.com, goibibo.com, redbus.in, makemytrip.com.sg, and makemytrip.ae; and other technology-enhanced distribution channels, such as call centers, travel stores, and travel agents network, as well as mobile service platform. The company serves leisure and corporate travelers. MakeMyTrip Limited was incorporated in 2000 and is based in Gurugram, India.