Financial Review: Xiabuxiabu Catering Management (OTCMKTS:XIAXF) and Darden Restaurants (NYSE:DRI)

Xiabuxiabu Catering Management (OTCMKTS:XIAXF) and Darden Restaurants (NYSE:DRI) are both consumer cyclical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Earnings and Valuation

This table compares Xiabuxiabu Catering Management and Darden Restaurants”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xiabuxiabu Catering Management	N/A	N/A	N/A	N/A	N/A
Darden Restaurants	$11.39 billion	1.78	$1.03 billion	$8.52	19.97

Darden Restaurants has higher revenue and earnings than Xiabuxiabu Catering Management.

Profitability

This table compares Xiabuxiabu Catering Management and Darden Restaurants’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xiabuxiabu Catering Management	N/A	N/A	N/A
Darden Restaurants	9.02%	49.82%	9.48%

Analyst Ratings

This is a breakdown of recent recommendations for Xiabuxiabu Catering Management and Darden Restaurants, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xiabuxiabu Catering Management	0	0	0	0	N/A
Darden Restaurants	1	6	18	0	2.68

Darden Restaurants has a consensus price target of $179.28, suggesting a potential upside of 5.35%. Given Darden Restaurants’ higher possible upside, analysts clearly believe Darden Restaurants is more favorable than Xiabuxiabu Catering Management.

Institutional & Insider Ownership

93.6% of Darden Restaurants shares are owned by institutional investors. 0.9% of Darden Restaurants shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Darden Restaurants beats Xiabuxiabu Catering Management on 8 of the 8 factors compared between the two stocks.

About Xiabuxiabu Catering Management

Xiabuxiabu Catering Management (China) Holdings Co., Ltd., an investment holding company, operates Chinese hotpot restaurants in the People's Republic of China. It owns and operates restaurants under the Xiabuxiabu brand name, and restaurants under the Coucou brand name in Beijing, Tianjin, Shanghai, and Hong Kong. The company also offers catering services; and sells condiment products and other goods. In addition, it engages in the slaughtering, processing, cold storage, and sale of raw materials; and construction business. The company was founded in 1998 and is headquartered in Beijing, the People's Republic of China. Xiabuxiabu Catering Management (China) Holdings Co., Ltd. is a subsidiary of Ying Qi Investments Limited.

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.