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DRI vs LEN-B

DRI
Darden Restaurants, Inc.
BEARISH
Price
$201.06
Market Cap
$23.03B
Sector
Consumer Cyclical
AI Confidence
85%
LEN-B
Lennar Corporation
NEUTRAL
Price
$89.93
Market Cap
$22.15B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
DRI
21.19
LEN-B
12.94
Forward P/E
DRI
17.68
LEN-B
5.55
P/B Ratio
DRI
10.96
LEN-B
1.01
P/S Ratio
DRI
1.8
LEN-B
0.67
EV/EBITDA
DRI
15.4
LEN-B
7.59

Profitability

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

Growth

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

Financial Health

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

Dividends

Dividend Yield
DRI
2.98%
LEN-B
2.22%
Payout Ratio
DRI
62.17%
LEN-B
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-B NEUTRAL

Lennar Corporation exhibits a strong deterministic health profile with a Piotroski F-Score of 7/9 and an exceptionally clean balance sheet (Debt/Equity 0.25). While the stock is significantly undervalued relative to its Graham Number ($117.86), it is currently plagued by severe fundamental deterioration, with earnings plummeting over 50% YoY. The disconnect between strong solvency and crashing growth, coupled with a 0/100 technical trend, suggests a value trap scenario in the short term despite long-term defensive viability.

Strengths
Strong financial health indicated by a Piotroski F-Score of 7/9
Exceptional liquidity with a Current Ratio of 8.33 and Quick Ratio of 3.54
Very low leverage with a Debt/Equity ratio of 0.25
Risks
Severe earnings contraction with YoY growth at -52.60%
Negative revenue growth trends (-13.30% YoY and -13.26% Q/Q)
Strongly bearish technical momentum (Technical Trend: 0/100)

Compare Another Pair

DRI vs LEN-B: Head-to-Head Comparison

This page compares Darden Restaurants, Inc. (DRI) and Lennar Corporation (LEN-B) 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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