Darden vs. Bloomin’ Brands
The New York Stock Exchange (NYSE) is the largest stock exchange in the world by market capitalization by its listed companies at 21.3 trillion dollars as of June 2017. Speaking of market capitalization of two companies: Darden Restaurants Inc. and Bloomin’ Brands Inc. Darden Restaurants Inc. has market capitalization of 10, 220, 360,000 dollars whereas Bloomin’ Brands Inc. has market capitalization of 1,549,760,000 dollars. These two companies have a history of going against each other as major restauranteurs, one owning Olive Garden and the other owning Outback among others, as well as having their own long histories. Simply looking at this one could assume that Darden is a much better company, but you must look at other ratios to determine this. Certain ratios such as
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Looking at the earnings per share of both Darden ($2.92) to Bloomin’ Brands ($.37) an investor would see that they would get almost 8 times as much value per share for buying Darden stock versus Bloomin’ Brands. What about the price per earnings ratio? Darden “wins” this category too coming in at 24.9 compared to 49, almost having to pay twice as much to get $1 of company profit. Then moving to the debt to equity ratio it is shown that Darden has 1.35 versus 12.53 from Bloomin’ Brands, this makes it seem like Bloomin’ Brands is being more aggressive in financing with debt which is a riskier move. The next ratio is the current ratio of .69 and .47 of Darden and Bloomin’ Brands, respectfully, which is the closest ratio so far; but it proves that Darden is again on top between the two in paying off short term liabilities with current assets. The last ratio to look at is the quick ratio and it is .49 for Darden and .37 for Bloomin’ Brands. This is again a close ratio, but Darden comes out on top again for being able to cover liabilities with liquid