Darden Restaurants Inc (DRI)vsAltria Group (MO)
DRI
Darden Restaurants Inc
$201.66
+0.57%
CONSUMER CYCLICAL · Cap: $23.46B
MO
Altria Group
$63.78
-0.84%
CONSUMER DEFENSIVE · Cap: $107.97B
Smart Verdict
WallStSmart Research — data-driven comparison
Altria Group generates 58% more annual revenue ($20.14B vs $12.76B). MO leads profitability with a 34.5% profit margin vs 8.7%. MO appears more attractively valued with a PEG of 1.65. DRI earns a higher WallStSmart Score of 55/100 (C-).
DRI
Buy55
out of 100
Grade: C-
MO
Hold47
out of 100
Grade: D+
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
-135.3%
Fair Value
$28.02
Current Price
$63.78
$35.76 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 52 in profit
Keeps 35 of every $100 in revenue as profit
Strong operational efficiency at 57.1%
Conservative balance sheet, low leverage
Large-cap with strong market position
Attractively priced relative to earnings
Generating 3.2B in free cash flow
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
ROE of 0.0% — below average capital efficiency
Revenue declined 0.5%
Earnings declined 62.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : DRI
The strongest argument for DRI centers on Return on Equity.
Bull Case : MO
The strongest argument for MO centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 34.5% and operating margin at 57.1%.
Bear Case : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth.
Bear Case : MO
The primary concerns for MO are PEG Ratio, Return on Equity, Revenue Growth.
Key Dynamics to Monitor
DRI profiles as a value stock while MO is a declining play — different risk/reward profiles.
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.
MO generates stronger free cash flow (3.2B), providing more financial flexibility.
Bottom Line
DRI scores higher overall (55/100 vs 47/100). Both earn "Buy" and "Hold" 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.
Altria Group
CONSUMER DEFENSIVE · TOBACCO · USA
Altria Group, Inc. (previously known as Philip Morris Companies, Inc.) is an American corporation and one of the world's largest producers and marketers of tobacco, cigarettes and related products. It operates worldwide and is headquartered in unincorporated Henrico County, Virginia, just outside the city of Richmond.
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