Darden Restaurants Inc (DRI)vsThe Home Depot Inc (HD)
DRI
Darden Restaurants Inc
$192.49
-3.21%
CONSUMER CYCLICAL · Cap: $22.39B
HD
The Home Depot Inc
$321.65
+0.58%
CONSUMER CYCLICAL · Cap: $320.37B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 1190% more annual revenue ($164.68B vs $12.76B). DRI leads profitability with a 8.7% profit margin vs 8.6%. DRI appears more attractively valued with a PEG of 1.81. DRI earns a higher WallStSmart Score of 55/100 (C-).
DRI
Buy55
out of 100
Grade: C-
HD
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-229.8%
Fair Value
$64.53
Current Price
$192.49
$127.96 premium
Margin of Safety
-234.5%
Fair Value
$96.70
Current Price
$321.65
$224.95 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 52 in profit
Mega-cap, among the largest globally
Every $100 of equity generates 146 in profit
Safe zone — low bankruptcy risk
Generating 2.3B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 10.5x book value
Earnings declined 3.3%
Distress zone — elevated risk
Weak financial health signals
Expensive relative to growth rate
Trading at 25.0x book value
Revenue declined 3.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : DRI
The strongest argument for DRI centers on Return on Equity.
Bull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bear Case : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth.
Bear Case : HD
The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.
Key Dynamics to Monitor
HD carries more volatility with a beta of 1.04 — expect wider price swings.
DRI is growing revenue faster at 5.9% — sustainability is the question.
HD generates stronger free cash flow (2.3B), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DRI scores higher overall (55/100 vs 50/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Darden Restaurants Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Darden Restaurants, Inc. is an American multi-brand restaurant operator headquartered in Orlando.
The Home Depot Inc
CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA
The Home Depot, Inc., commonly known as Home Depot, is the largest home improvement retailer in the United States, supplying tools, construction products, and services. The company is headquartered in incorporated Cobb County, Georgia, with an Atlanta mailing address.
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