Head to Head Comparison: MakeMyTrip (NASDAQ:MMYT) and Darden Restaurants (NYSE:DRI)

Darden Restaurants (NYSE:DRI) and MakeMyTrip (NASDAQ:MMYT) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Volatility and Risk

Darden Restaurants has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, MakeMyTrip has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.

Institutional & Insider Ownership

93.6% of Darden Restaurants shares are owned by institutional investors. Comparatively, 51.9% of MakeMyTrip shares are owned by institutional investors. 0.7% of Darden Restaurants shares are owned by company insiders. Comparatively, 10.3% of MakeMyTrip shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Darden Restaurants and MakeMyTrip”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Darden Restaurants	$13.21 billion	1.90	$1.21 billion	$10.38	21.21
MakeMyTrip	$1.04 billion	5.20	$51.80 million	$0.12	480.67

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

Profitability

This table compares Darden Restaurants and MakeMyTrip’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Darden Restaurants	9.13%	57.44%	9.62%
MakeMyTrip	3.23%	-632.52%	8.31%

Analyst Ratings

This is a breakdown of current ratings and price targets for Darden Restaurants and MakeMyTrip, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Darden Restaurants	0	9	18	0	2.67
MakeMyTrip	0	2	5	0	2.71

Darden Restaurants currently has a consensus target price of $230.50, suggesting a potential upside of 4.69%. MakeMyTrip has a consensus target price of $86.75, suggesting a potential upside of 50.40%. Given MakeMyTrip’s stronger consensus rating and higher possible upside, analysts clearly believe MakeMyTrip is more favorable than Darden Restaurants.

Summary

Darden Restaurants beats MakeMyTrip on 8 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 MakeMyTrip

MakeMyTrip Limited, an online travel company, sells travel products and solutions in India, the United States, Singapore, Malaysia, Thailand, the United Arab Emirates, Peru, Colombia, Vietnam, and Indonesia. The company operates through three segments: Air Ticketing, Hotels and Packages, and Bus Ticketing. Its services and products include air tickets; hotels and packages; rail tickets; bus tickets; and car hire, as well as ancillary travel requirements, such as visa processing and facilitating access to travel insurance. The company allows travelers to research, plan, book, and purchase travel services and products through its websites, such as makemytrip.com, goibibo.com, redbus.in, makemytrip.com.sg, and makemytrip.ae; and other technology-enhanced distribution channels, such as call centers, travel stores, and travel agents network, as well as mobile service platform. The company serves leisure and corporate travelers. MakeMyTrip Limited was incorporated in 2000 and is based in Gurugram, India.