WallStSmart

Darden Restaurants Inc (DRI)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 344% more annual revenue ($56.67B vs $12.76B). NVS leads profitability with a 24.7% profit margin vs 8.7%. DRI appears more attractively valued with a PEG of 1.81. DRI earns a higher WallStSmart Score of 55/100 (C-).

DRI

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 7.0Value: 7.3Quality: 4.3
Piotroski: 4/9Altman Z: 1.33

NVS

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 9.0Value: 4.7Quality: 6.5
Piotroski: 4/9Altman Z: 1.96
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRISignificantly Overvalued (-229.4%)

Margin of Safety

-229.4%

Fair Value

$64.60

Current Price

$201.66

$137.06 premium

UndervaluedFair: $64.60Overvalued
NVSSignificantly Overvalued (-243.7%)

Margin of Safety

-243.7%

Fair Value

$48.62

Current Price

$150.75

$102.13 premium

UndervaluedFair: $48.62Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRI1 strengths · Avg: 10.0/10
Return on EquityProfitability
51.5%10/10

Every $100 of equity generates 52 in profit

NVS5 strengths · Avg: 9.0/10
Market CapQuality
$286.27B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
30.8%10/10

Every $100 of equity generates 31 in profit

Profit MarginProfitability
24.7%9/10

Keeps 25 of every $100 in revenue as profit

Operating MarginProfitability
27.8%8/10

Strong operational efficiency at 27.8%

Free Cash FlowQuality
$1.64B8/10

Generating 1.6B in free cash flow

Areas to Watch

DRI4 concerns · Avg: 3.0/10
PEG RatioValuation
1.814/10

Expensive relative to growth rate

Price/BookValuation
11.0x4/10

Trading at 11.0x book value

EPS GrowthGrowth
-3.3%2/10

Earnings declined 3.3%

Altman Z-ScoreHealth
1.332/10

Distress zone — elevated risk

NVS4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.2%4/10

2.2% revenue growth

Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

PEG RatioValuation
2.542/10

Expensive relative to growth rate

EPS GrowthGrowth
-11.6%2/10

Earnings declined 11.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : DRI

The strongest argument for DRI centers on Return on Equity.

Bull Case : NVS

The strongest argument for NVS centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 24.7% and operating margin at 27.8%.

Bear Case : DRI

The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth.

Bear Case : NVS

The primary concerns for NVS are Revenue Growth, Altman Z-Score, PEG Ratio.

Key Dynamics to Monitor

DRI carries more volatility with a beta of 0.60 — expect wider price swings.

DRI is growing revenue faster at 5.9% — sustainability is the question.

NVS generates stronger free cash flow (1.6B), providing more financial flexibility.

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

Bottom Line

DRI scores higher overall (55/100 vs 51/100). Both earn "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.

Novartis AG ADR

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Novartis AG researches, develops, manufactures and markets medical devices worldwide. The company is headquartered in Basel, Switzerland.

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