Darden Restaurants Inc (DRI)vsThe Home Depot Inc (HD)
DRI
Darden Restaurants Inc
$206.97
-2.48%
CONSUMER CYCLICAL · Cap: $22.74B
HD
The Home Depot Inc
$333.33
-1.45%
CONSUMER CYCLICAL · Cap: $337.89B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 1161% more annual revenue ($166.59B vs $13.21B). DRI leads profitability with a 9.1% profit margin vs 8.4%. DRI appears more attractively valued with a PEG of 1.77. DRI earns a higher WallStSmart Score of 67/100 (B-).
DRI
Strong Buy67
out of 100
Grade: B-
HD
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-89.5%
Fair Value
$112.30
Current Price
$206.97
$94.67 premium
Margin of Safety
-61.3%
Fair Value
$213.57
Current Price
$333.33
$119.76 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 55 in profit
Earnings expanding 36.0% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Safe zone — low bankruptcy risk
Generating 5.2B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 10.7x book value
Negative free cash flow — burning cash
Distress zone — elevated risk
Expensive relative to growth rate
4.8% revenue growth
Weak financial health signals
Trading at 23.9x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : DRI
The strongest argument for DRI centers on Return on Equity, EPS Growth. Revenue growth of 13.7% demonstrates continued momentum.
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, Free Cash Flow. Debt-to-equity of 2.74 is elevated, increasing financial risk.
Bear Case : HD
The primary concerns for HD are PEG Ratio, Revenue Growth, Piotroski F-Score. Debt-to-equity of 4.18 is elevated, increasing financial risk.
Key Dynamics to Monitor
HD carries more volatility with a beta of 0.95 — expect wider price swings.
DRI is growing revenue faster at 13.7% — sustainability is the question.
HD generates stronger free cash flow (5.2B), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DRI scores higher overall (67/100 vs 54/100) and 13.7% revenue growth. 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.
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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