Darden Restaurants Inc (DRI)vsWest Pharmaceutical Services Inc (WST)
DRI
Darden Restaurants Inc
$196.23
+0.54%
CONSUMER CYCLICAL · Cap: $22.35B
WST
West Pharmaceutical Services Inc
$325.92
+1.21%
HEALTHCARE · Cap: $22.08B
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 296% more annual revenue ($12.76B vs $3.22B). WST leads profitability with a 16.9% profit margin vs 8.7%. DRI appears more attractively valued with a PEG of 1.68. WST earns a higher WallStSmart Score of 67/100 (B-).
DRI
Buy55
out of 100
Grade: C-
WST
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-64.2%
Fair Value
$129.57
Current Price
$196.23
$66.66 premium
Margin of Safety
-32.4%
Fair Value
$185.95
Current Price
$325.92
$139.97 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 52 in profit
Earnings expanding 56.1% YoY
Safe zone — low bankruptcy risk
Strong operational efficiency at 21.7%
Revenue surging 21.0% year-over-year
Areas to Watch
Expensive relative to growth rate
Trading at 10.7x book value
Earnings declined 3.3%
Distress zone — elevated risk
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : DRI
The strongest argument for DRI centers on Return on Equity.
Bull Case : WST
The strongest argument for WST centers on EPS Growth, Altman Z-Score, Operating Margin. Profitability is solid with margins at 16.9% and operating margin at 21.7%. Revenue growth of 21.0% demonstrates continued momentum.
Bear Case : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth.
Bear Case : WST
The primary concerns for WST are PEG Ratio, P/E Ratio. A P/E of 41.8x leaves little room for execution misses.
Key Dynamics to Monitor
DRI profiles as a value stock while WST is a growth play — different risk/reward profiles.
WST carries more volatility with a beta of 1.17 — expect wider price swings.
WST is growing revenue faster at 21.0% — sustainability is the question.
DRI generates stronger free cash flow (610M), providing more financial flexibility.
Bottom Line
WST scores higher overall (67/100 vs 55/100), backed by strong 16.9% margins and 21.0% 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.
West Pharmaceutical Services Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
West Pharmaceutical Services, Inc. is a designer and manufacturer of injectable pharmaceutical packaging and delivery systems. The company is headquartered in Exton, Pennsylvania.
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