WallStSmart

Darden Restaurants Inc (DRI)vsSeagate Technology PLC (STX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Darden Restaurants Inc generates 25% more annual revenue ($12.58B vs $10.06B). STX leads profitability with a 19.6% profit margin vs 8.9%. STX appears more attractively valued with a PEG of 0.67. STX earns a higher WallStSmart Score of 72/100 (B).

DRI

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 7.0Value: 8.7Quality: 4.3
Piotroski: 4/9Altman Z: 1.33

STX

Strong Buy

72

out of 100

Grade: B

Growth: 6.7Profit: 9.0Value: 8.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRIUndervalued (+12.6%)

Margin of Safety

+12.6%

Fair Value

$243.45

Current Price

$203.05

$40.40 discount

UndervaluedFair: $243.45Overvalued
STXUndervalued (+1.9%)

Margin of Safety

+1.9%

Fair Value

$415.12

Current Price

$411.23

$3.89 discount

UndervaluedFair: $415.12Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRI1 strengths · Avg: 10.0/10
Return on EquityProfitability
54.1%10/10

Every $100 of equity generates 54 in profit

STX6 strengths · Avg: 8.7/10
EPS GrowthGrowth
67.7%10/10

Earnings expanding 67.7% YoY

Market CapQuality
$97.36B9/10

Large-cap with strong market position

Return on EquityProfitability
22.1%9/10

Every $100 of equity generates 22 in profit

PEG RatioValuation
0.678/10

Growing faster than its price suggests

Operating MarginProfitability
29.9%8/10

Strong operational efficiency at 29.9%

Revenue GrowthGrowth
21.5%8/10

Revenue surging 21.5% year-over-year

Areas to Watch

DRI3 concerns · Avg: 3.3/10
PEG RatioValuation
1.824/10

Expensive relative to growth rate

Price/BookValuation
10.3x4/10

Trading at 10.3x book value

Altman Z-ScoreHealth
1.332/10

Distress zone — elevated risk

STX2 concerns · Avg: 2.0/10
P/E RatioValuation
49.0x2/10

Premium valuation, high expectations priced in

Price/BookValuation
195.8x2/10

Trading at 195.8x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : DRI

The strongest argument for DRI centers on Return on Equity.

Bull Case : STX

The strongest argument for STX centers on EPS Growth, Market Cap, Return on Equity. Profitability is solid with margins at 19.6% and operating margin at 29.9%. Revenue growth of 21.5% demonstrates continued momentum.

Bear Case : DRI

The primary concerns for DRI are PEG Ratio, Price/Book, Altman Z-Score.

Bear Case : STX

The primary concerns for STX are P/E Ratio, Price/Book. A P/E of 49.0x leaves little room for execution misses.

Key Dynamics to Monitor

DRI profiles as a value stock while STX is a growth play — different risk/reward profiles.

STX carries more volatility with a beta of 1.65 — expect wider price swings.

STX is growing revenue faster at 21.5% — sustainability is the question.

STX generates stronger free cash flow (618M), providing more financial flexibility.

Bottom Line

STX scores higher overall (72/100 vs 61/100), backed by strong 19.6% margins and 21.5% 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.

Seagate Technology PLC

TECHNOLOGY · COMPUTER HARDWARE · USA

Seagate Technology Holdings plc, an Irish public limited company (commonly referred to as Seagate) is an American data storage company.

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