WallStSmart

Darden Restaurants Inc (DRI)vsHaverty Furniture Companies Inc (HVT-A)

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Smart Verdict

WallStSmart Research — data-driven comparison

Darden Restaurants Inc generates 1593% more annual revenue ($13.21B vs $780.39M). DRI leads profitability with a 9.1% profit margin vs 2.9%. HVT-A appears more attractively valued with a PEG of 0.79. DRI earns a higher WallStSmart Score of 67/100 (B-).

DRI

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 7.0Value: 4.0Quality: 4.0
Piotroski: 6/9Altman Z: 1.40

HVT-A

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 4.0Value: 8.0Quality: 6.5
Piotroski: 4/9Altman Z: 2.96
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRISignificantly Overvalued (-86.1%)

Margin of Safety

-86.1%

Fair Value

$114.33

Current Price

$199.75

$85.42 premium

UndervaluedFair: $114.33Overvalued
HVT-AUndervalued (+63.0%)

Margin of Safety

+63.0%

Fair Value

$78.76

Current Price

$28.09

$50.67 discount

UndervaluedFair: $78.76Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRI2 strengths · Avg: 9.0/10
Return on EquityProfitability
54.7%10/10

Every $100 of equity generates 55 in profit

EPS GrowthGrowth
36.0%8/10

Earnings expanding 36.0% YoY

HVT-A3 strengths · Avg: 9.3/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

EPS GrowthGrowth
100.0%10/10

Earnings expanding 100.0% YoY

PEG RatioValuation
0.798/10

Growing faster than its price suggests

Areas to Watch

DRI4 concerns · Avg: 3.0/10
PEG RatioValuation
1.874/10

Expensive relative to growth rate

Price/BookValuation
10.3x4/10

Trading at 10.3x book value

Free Cash FlowQuality
$-159.50M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.402/10

Distress zone — elevated risk

HVT-A4 concerns · Avg: 3.0/10
Market CapQuality
$454.55M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
4.0%3/10

ROE of 4.0% — below average capital efficiency

Profit MarginProfitability
2.9%3/10

2.9% margin — thin

Operating MarginProfitability
3.4%3/10

Operating margin of 3.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : DRI

The strongest argument for DRI centers on Return on Equity, EPS Growth. Revenue growth of 13.7% demonstrates continued momentum.

Bull Case : HVT-A

The strongest argument for HVT-A centers on Price/Book, EPS Growth, PEG Ratio. PEG of 0.79 suggests the stock is reasonably priced for its growth.

Bear Case : DRI

The primary concerns for DRI are PEG Ratio, Price/Book, Free Cash Flow. Debt-to-equity of 2.74 is elevated, increasing financial risk.

Bear Case : HVT-A

The primary concerns for HVT-A are Market Cap, Return on Equity, Profit Margin. Thin 2.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

HVT-A carries more volatility with a beta of 1.19 — expect wider price swings.

DRI is growing revenue faster at 13.7% — sustainability is the question.

HVT-A generates stronger free cash flow (18M), providing more financial flexibility.

Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DRI scores higher overall (67/100 vs 59/100) and 13.7% revenue growth. HVT-A offers better value entry with a 63.0% margin of safety. Both earn "Strong Buy" and "Buy" 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.

Haverty Furniture Companies Inc

CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA

Haverty Furniture Companies, Inc. is a specialty retailer of residential furniture and accessories in the United States. The company is headquartered in Atlanta, Georgia.

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