Darden Restaurants Inc (DRI)vsConstellation Brands Inc Class A (STZ)
DRI
Darden Restaurants Inc
$196.23
+0.54%
CONSUMER CYCLICAL · Cap: $22.35B
STZ
Constellation Brands Inc Class A
$148.21
-1.36%
CONSUMER DEFENSIVE · Cap: $25.88B
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 40% more annual revenue ($12.76B vs $9.14B). STZ leads profitability with a 18.5% profit margin vs 8.7%. DRI appears more attractively valued with a PEG of 1.68. STZ earns a higher WallStSmart Score of 56/100 (C).
DRI
Buy55
out of 100
Grade: C-
STZ
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-64.2%
Fair Value
$129.57
Current Price
$196.23
$66.66 premium
Intrinsic value data unavailable for STZ.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 52 in profit
Every $100 of equity generates 23 in profit
Attractively priced relative to earnings
Strong operational efficiency at 26.7%
Areas to Watch
Expensive relative to growth rate
Trading at 10.7x book value
Earnings declined 3.3%
Distress zone — elevated risk
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Revenue declined 11.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : DRI
The strongest argument for DRI centers on Return on Equity.
Bull Case : STZ
The strongest argument for STZ centers on Return on Equity, P/E Ratio, Operating Margin. Profitability is solid with margins at 18.5% and operating margin at 26.7%.
Bear Case : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth.
Bear Case : STZ
The primary concerns for STZ are Altman Z-Score, Debt/Equity, PEG Ratio.
Key Dynamics to Monitor
DRI profiles as a value stock while STZ is a declining play — different risk/reward profiles.
DRI carries more volatility with a beta of 0.59 — expect wider price swings.
DRI is growing revenue faster at 5.9% — sustainability is the question.
DRI generates stronger free cash flow (610M), providing more financial flexibility.
Bottom Line
STZ scores higher overall (56/100 vs 55/100), backed by strong 18.5% margins. 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.
Constellation Brands Inc Class A
CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA
Constellation Brands, Inc., headquartered in Victor, New York, is an American producer and marketer of beer, wine, and spirits.
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