Darden Restaurants (NYSE: DRI) is one of 42 publicly-traded companies in the “Restaurants & Bars” industry, but how does it weigh in compared to its competitors? We will compare Darden Restaurants to related companies based on the strength of its risk, institutional ownership, dividends, valuation, profitability, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings for Darden Restaurants and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Darden Restaurants 1 14 9 0 2.33
Darden Restaurants Competitors 284 1607 2189 76 2.49

Darden Restaurants currently has a consensus target price of $87.29, indicating a potential upside of 5.37%. As a group, “Restaurants & Bars” companies have a potential upside of 13.69%. Given Darden Restaurants’ competitors stronger consensus rating and higher probable upside, analysts plainly believe Darden Restaurants has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Darden Restaurants and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Darden Restaurants $7.17 billion $479.10 million 21.41
Darden Restaurants Competitors $1.87 billion $167.60 million 264.81

Darden Restaurants has higher revenue and earnings than its competitors. Darden Restaurants is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Darden Restaurants and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Darden Restaurants 6.60% 26.06% 10.47%
Darden Restaurants Competitors 0.01% -31.26% 1.78%

Institutional and Insider Ownership

88.3% of Darden Restaurants shares are owned by institutional investors. Comparatively, 68.5% of shares of all “Restaurants & Bars” companies are owned by institutional investors. 0.6% of Darden Restaurants shares are owned by insiders. Comparatively, 20.6% of shares of all “Restaurants & Bars” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Darden Restaurants pays an annual dividend of $2.52 per share and has a dividend yield of 3.0%. Darden Restaurants pays out 65.1% of its earnings in the form of a dividend. As a group, “Restaurants & Bars” companies pay a dividend yield of 3.0% and pay out -1,021.5% of their earnings in the form of a dividend.

Volatility & Risk

Darden Restaurants has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500. Comparatively, Darden Restaurants’ competitors have a beta of 0.60, meaning that their average stock price is 40% less volatile than the S&P 500.

Summary

Darden Restaurants competitors beat Darden Restaurants on 8 of the 15 factors compared.

About Darden Restaurants

Darden Restaurants, Inc. is a full-service restaurant company. The Company owned and operated 1,536 restaurants through its subsidiaries in the United States and Canada, as of May 29, 2016. The Company’s segments include Olive Garden, LongHorn Steakhouse, Fine Dining (which includes The Capital Grille, and Eddie V’s Prime Seafood and Wildfish Seafood Grille (Eddie V’s)) and Other Business (which includes Yard House, Seasons 52, Bahama Breeze, consumer-packaged goods and franchise revenues). As of May 29, 2016, the Company also had 50 restaurants operated by independent third parties pursuant to area development and franchise agreements. Olive Garden’s menu includes a range of authentic Italian foods featuring fresh ingredients and a selection of imported Italian wines. LongHorn Steakhouse restaurants feature a range of menu items, including fresh steaks and chicken, as well as salmon, shrimp, ribs, pork chops, burgers and prime rib.

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