Darden Restaurants Inc (DRI)vsRoyal Bank of Canada (RY)
DRI
Darden Restaurants Inc
$201.66
+0.57%
CONSUMER CYCLICAL · Cap: $23.46B
RY
Royal Bank of Canada
$162.50
+0.24%
FINANCIAL SERVICES · Cap: $225.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 397% more annual revenue ($63.42B vs $12.76B). RY leads profitability with a 33.1% profit margin vs 8.7%. DRI appears more attractively valued with a PEG of 1.81. RY earns a higher WallStSmart Score of 68/100 (B-).
DRI
Buy55
out of 100
Grade: C-
RY
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-229.4%
Fair Value
$64.60
Current Price
$201.66
$137.06 premium
Margin of Safety
+44.3%
Fair Value
$306.13
Current Price
$162.50
$143.63 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 52 in profit
Mega-cap, among the largest globally
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 46.2%
Generating 37.3B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Trading at 11.0x book value
Earnings declined 3.3%
Distress zone — elevated risk
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : DRI
The strongest argument for DRI centers on Return on Equity.
Bull Case : RY
The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.1% and operating margin at 46.2%.
Bear Case : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth.
Bear Case : RY
The primary concerns for RY are PEG Ratio.
Key Dynamics to Monitor
DRI profiles as a value stock while RY is a mature play — different risk/reward profiles.
RY carries more volatility with a beta of 0.94 — expect wider price swings.
RY is growing revenue faster at 7.5% — sustainability is the question.
RY generates stronger free cash flow (37.3B), providing more financial flexibility.
Bottom Line
RY scores higher overall (68/100 vs 55/100), backed by strong 33.1% margins. 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.
Royal Bank of Canada
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Royal Bank of Canada is a globally diversified financial services company. The company is headquartered in Toronto, Canada.
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