Darden Restaurants Inc (DRI)vsWestern Digital Corporation (WDC)
DRI
Darden Restaurants Inc
$203.05
-0.67%
CONSUMER CYCLICAL · Cap: $23.62B
WDC
Western Digital Corporation
$293.10
-7.52%
TECHNOLOGY · Cap: $100.21B
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 17% more annual revenue ($12.58B vs $10.73B). WDC leads profitability with a 35.6% profit margin vs 8.9%. WDC appears more attractively valued with a PEG of 0.69. DRI earns a higher WallStSmart Score of 61/100 (C+).
DRI
Buy61
out of 100
Grade: C+
WDC
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+12.6%
Fair Value
$243.45
Current Price
$203.05
$40.40 discount
Margin of Safety
-311.2%
Fair Value
$66.57
Current Price
$293.10
$226.53 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 54 in profit
Every $100 of equity generates 41 in profit
Keeps 36 of every $100 in revenue as profit
Large-cap with strong market position
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
Trading at 10.3x book value
Distress zone — elevated risk
Moderate valuation
Trading at 14.0x book value
Revenue declined 41.0%
Earnings declined 95.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : DRI
The strongest argument for DRI centers on Return on Equity.
Bull Case : WDC
The strongest argument for WDC centers on Return on Equity, Profit Margin, Market Cap. Profitability is solid with margins at 35.6% and operating margin at 15.4%. PEG of 0.69 suggests the stock is reasonably priced for its growth.
Bear Case : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, Altman Z-Score.
Bear Case : WDC
The primary concerns for WDC are P/E Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
DRI profiles as a value stock while WDC is a declining play — different risk/reward profiles.
WDC carries more volatility with a beta of 1.85 — expect wider price swings.
DRI is growing revenue faster at 7.3% — sustainability is the question.
WDC generates stronger free cash flow (653M), providing more financial flexibility.
Bottom Line
DRI scores higher overall (61/100 vs 55/100). 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.
Western Digital Corporation
TECHNOLOGY · COMPUTER HARDWARE · USA
Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.
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