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DRI vs LEN

DRI
Darden Restaurants, Inc.
BEARISH
Price
$201.06
Market Cap
$23.03B
Sector
Consumer Cyclical
AI Confidence
85%
LEN
Lennar Corporation
NEUTRAL
Price
$92.32
Market Cap
$22.74B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
DRI
21.19
LEN
13.28
Forward P/E
DRI
17.68
LEN
12.13
P/B Ratio
DRI
10.96
LEN
1.04
P/S Ratio
DRI
1.8
LEN
0.69
EV/EBITDA
DRI
15.4
LEN
7.82

Profitability

Gross Margin
DRI
21.51%
LEN
16.87%
Operating Margin
DRI
13.15%
LEN
3.64%
Profit Margin
DRI
8.66%
LEN
5.39%
ROE
DRI
51.54%
LEN
8.08%
ROA
DRI
7.26%
LEN
4.3%

Growth

Revenue Growth
DRI
5.9%
LEN
-13.3%
Earnings Growth
DRI
-3.3%
LEN
-52.6%

Financial Health

Debt/Equity
DRI
3.88
LEN
0.25
Current Ratio
DRI
0.39
LEN
8.33
Quick Ratio
DRI
0.13
LEN
3.54

Dividends

Dividend Yield
DRI
2.98%
LEN
2.17%
Payout Ratio
DRI
62.17%
LEN
28.78%

AI Verdict

DRI BEARISH

Darden Restaurants exhibits a stable but mediocre Piotroski F-Score of 4/9, signaling a lack of strong financial momentum. The stock is trading at a massive premium, with a current price of $201.06 compared to a Graham Number of $62.59 and an Intrinsic Value of $66.43. While the company maintains an exceptional ROE of 51.54%, this is heavily leveraged against a precarious balance sheet characterized by a critical current ratio of 0.39 and high debt-to-equity. Negative earnings growth and bearish insider activity further undermine the bullish analyst consensus.

Strengths
Exceptional Return on Equity (ROE) of 51.54%
Consistent positive revenue growth (5.90% YoY)
Strong market position with a $23B market cap
Risks
Severe overvaluation relative to Graham and Intrinsic value baselines
Critical liquidity risk indicated by a Current Ratio of 0.39 and Quick Ratio of 0.13
High financial leverage with a Debt/Equity ratio of 3.88
LEN NEUTRAL

Lennar exhibits a strong deterministic health profile with a Piotroski F-Score of 7/9 and a defensive valuation below its Graham Number of $117.86. However, this financial stability is starkly contrasted by a severe operational collapse, evidenced by a -52.60% YoY earnings decline and a 0/4 earnings beat record over the last four quarters. While the balance sheet is a fortress with a Debt/Equity ratio of 0.25 and a Current Ratio of 8.33, the technical trend is completely bearish (0/100). The stock is currently caught between strong solvency and deteriorating growth fundamentals.

Strengths
Strong Piotroski F-Score (7/9) indicating robust financial health
Exceptional liquidity with a Current Ratio of 8.33
Very low leverage with a Debt/Equity ratio of 0.25
Risks
Severe earnings contraction (-52.60% YoY)
Consistent failure to meet analyst earnings estimates (0/4 beats)
Strongly bearish technical trend (0/100)

Compare Another Pair

DRI vs LEN: Head-to-Head Comparison

This page compares Darden Restaurants, Inc. (DRI) and Lennar Corporation (LEN) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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