PulteGroup vs Darden

This page compares PulteGroup (PulteGroup, Inc.) and Darden Restaurants, Inc., outlining how each company approaches its business models, financial performance, and market context in a clear, neutral way. It highlights key similarities and differences to inform a broad audience, without offering recommendations. Educational content, not financial advice.

This page compares PulteGroup (PulteGroup, Inc.) and Darden Restaurants, Inc., outlining how each company approaches its business models, financial performance, and market context in a clear, neutral ...

Comparison Snapshot

Key Financial Metrics

PHM

Metric

DRI

$24.38B

Market Cap

$22.62B

10.91%

Potential Profit

12.17%

Buy

Analyst Rating

Buy

Why It's Moving

PulteGroup shares slide ahead of earnings as forecasts signal homebuilding slowdown.

Upcoming earnings project EPS of $2.78, down 20.57% year-over-year, and revenue of $4.31 billion, a 12.42% drop, highlighting softer home sales amid high rates.
PHM trades at a discounted Forward P/E of 11.7 versus the industry average of 12.2 and a PEG ratio of 1.06 below peers' 1.79, drawing value hunters.
Full-year consensus sees EPS at $11.34, off 22.8%, signaling broader challenges for homebuilders as market anticipates key insights on demand trends.

Sentiment:

🐻Bearish

PulteGroup shares slide ahead of earnings as forecasts signal homebuilding slowdown.

Upcoming earnings project EPS of $2.78, down 20.57% year-over-year, and revenue of $4.31 billion, a 12.42% drop, highlighting softer home sales amid high rates.
PHM trades at a discounted Forward P/E of 11.7 versus the industry average of 12.2 and a PEG ratio of 1.06 below peers' 1.79, drawing value hunters.
Full-year consensus sees EPS at $11.34, off 22.8%, signaling broader challenges for homebuilders as market anticipates key insights on demand trends.

Sentiment:

🐻Bearish

Investment Analysis

PulteGroup

PHM

Pros

PulteGroup delivered robust quarterly earnings, exceeding both EPS and revenue forecasts despite challenging market conditions.
The company maintains a conservative balance sheet with a low debt-to-equity ratio and strong liquidity, supporting financial flexibility.
Pricing power remains evident as the average sales price for homes increased year-on-year, reflecting resilience in key regional markets.

Considerations

Home sales revenues declined year-over-year, indicating softer demand in certain regions and potential vulnerability to housing market downturns.
Analysts have lowered full-year EPS estimates, reflecting concerns about future earnings growth and sector headwinds.
Stock price has underperformed despite earnings beats, suggesting investor caution amid broader macroeconomic and sector-specific risks.

Darden

DRI

Pros

Darden Restaurants benefits from a diversified portfolio of well-known restaurant brands, supporting consistent customer demand.
The company has demonstrated strong operational efficiency and profitability, with steady revenue growth and margin expansion.
Darden maintains a solid balance sheet, providing flexibility for strategic investments and shareholder returns.

Considerations

Restaurant operators face ongoing pressure from rising labour and food costs, which can compress margins and impact profitability.
Consumer discretionary spending is sensitive to economic cycles, making Darden vulnerable to downturns in consumer confidence.
Competition in the casual dining sector remains intense, requiring continuous innovation and marketing investment to retain market share.

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