Analyzing Dutch Bros (NYSE:BROS) and Darden Restaurants (NYSE:DRI)

Darden Restaurants (NYSE:DRI) and Dutch Bros (NYSE:BROS) are both large-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.

Insider & Institutional Ownership

93.6% of Darden Restaurants shares are held by institutional investors. Comparatively, 85.5% of Dutch Bros shares are held by institutional investors. 0.5% of Darden Restaurants shares are held by insiders. Comparatively, 42.4% of Dutch Bros shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Darden Restaurants has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, Dutch Bros has a beta of 2.55, suggesting that its share price is 155% more volatile than the S&P 500.

Profitability

This table compares Darden Restaurants and Dutch Bros’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Darden Restaurants	8.92%	52.44%	9.10%
Dutch Bros	4.04%	8.91%	2.64%

Earnings & Valuation

This table compares Darden Restaurants and Dutch Bros”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Darden Restaurants	$12.08 billion	1.93	$1.05 billion	$9.54	21.23
Dutch Bros	$1.28 billion	8.01	$35.26 million	$0.50	124.73

Darden Restaurants has higher revenue and earnings than Dutch Bros. Darden Restaurants is trading at a lower price-to-earnings ratio than Dutch Bros, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Darden Restaurants and Dutch Bros, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Darden Restaurants	0	13	18	0	2.58
Dutch Bros	0	4	19	1	2.88

Darden Restaurants currently has a consensus price target of $223.00, suggesting a potential upside of 10.10%. Dutch Bros has a consensus price target of $76.67, suggesting a potential upside of 22.93%. Given Dutch Bros’ stronger consensus rating and higher probable upside, analysts clearly believe Dutch Bros is more favorable than Darden Restaurants.

Summary

Dutch Bros beats Darden Restaurants on 8 of the 15 factors compared between the two stocks.

About Darden Restaurants

Darden Restaurants, Inc., together with its subsidiaries, owns and operates full-service restaurants in the United States and Canada. It operates under Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V’s Prime Seafood, and Capital Burger brand names. Darden Restaurants, Inc. was incorporated in 1995 and is based in Orlando, Florida.

About Dutch Bros

Dutch Bros Inc., together with its subsidiaries, operates and franchises drive-thru shops in the United States. The company operates through Company-Operated Shops and Franchising and Other segments. It serves through company-operated shops and online channels under Dutch Bros; Dutch Bros Coffee; Dutch Bros Rebel; Dutch Bros; and Blue Rebel brands. Dutch Bros Inc. was founded in 1992 and is headquartered in Grants Pass, Oregon.