Darden Restaurants (NYSE:DRI – Get Free Report) and CAVA Group (NYSE:CAVA – Get Free Report) are both large-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.
Risk & Volatility
Darden Restaurants has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, CAVA Group has a beta of 3.33, suggesting that its share price is 233% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for Darden Restaurants and CAVA Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Darden Restaurants | 1 | 6 | 16 | 0 | 2.65 |
| CAVA Group | 0 | 8 | 8 | 0 | 2.50 |
Profitability
This table compares Darden Restaurants and CAVA Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Darden Restaurants | 9.11% | 49.46% | 9.39% |
| CAVA Group | 5.04% | 7.37% | 4.25% |
Insider & Institutional Ownership
93.6% of Darden Restaurants shares are owned by institutional investors. Comparatively, 73.2% of CAVA Group shares are owned by institutional investors. 0.9% of Darden Restaurants shares are owned by insiders. Comparatively, 12.1% of CAVA Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Darden Restaurants and CAVA Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Darden Restaurants | $11.42 billion | 1.72 | $1.03 billion | $8.52 | 19.32 |
| CAVA Group | $845.22 million | 18.26 | $13.28 million | $0.41 | 330.10 |
Darden Restaurants has higher revenue and earnings than CAVA Group. Darden Restaurants is trading at a lower price-to-earnings ratio than CAVA Group, indicating that it is currently the more affordable of the two stocks.
Summary
Darden Restaurants beats CAVA Group on 10 of the 14 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 CAVA Group
CAVA Group, Inc. owns and operates a chain of restaurants under the CAVA brand in the United States. The company also offers dips, spreads, and dressings through grocery stores. In addition, the company provides online and mobile ordering platforms. Cava Group, Inc. was founded in 2006 and is headquartered in Washington, the District of Columbia.
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