Critical Review: Darling Ingredients (DAR) versus Sharps Compliance Corp (SMED)
Darling Ingredients (NYSE: DAR) and Sharps Compliance Corp (NASDAQ:SMED) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitabiliy, valuation and dividends.
This is a breakdown of recent ratings and price targets for Darling Ingredients and Sharps Compliance Corp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sharps Compliance Corp||0||1||0||0||2.00|
Darling Ingredients presently has a consensus price target of $18.00, suggesting a potential upside of 14.72%. Sharps Compliance Corp has a consensus price target of $6.00, suggesting a potential upside of 49.63%. Given Sharps Compliance Corp’s higher probable upside, analysts clearly believe Sharps Compliance Corp is more favorable than Darling Ingredients.
Risk and Volatility
Darling Ingredients has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500. Comparatively, Sharps Compliance Corp has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.
Institutional & Insider Ownership
95.5% of Darling Ingredients shares are held by institutional investors. Comparatively, 26.2% of Sharps Compliance Corp shares are held by institutional investors. 2.0% of Darling Ingredients shares are held by insiders. Comparatively, 20.3% of Sharps Compliance Corp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Darling Ingredients and Sharps Compliance Corp’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Darling Ingredients||$3.50 billion||0.74||$442.53 million||$0.65||24.14|
|Sharps Compliance Corp||$36.70 million||1.75||$497,999.00||($0.10)||-40.10|
Darling Ingredients has higher revenue and earnings than Sharps Compliance Corp. Sharps Compliance Corp is trading at a lower price-to-earnings ratio than Darling Ingredients, indicating that it is currently the more affordable of the two stocks.
This table compares Darling Ingredients and Sharps Compliance Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sharps Compliance Corp||-4.47%||-3.66%||-2.64%|
Darling Ingredients beats Sharps Compliance Corp on 10 of the 13 factors compared between the two stocks.
About Darling Ingredients
Darling Ingredients Inc. (Darling) is a developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a range of ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, industrial, fuel, bioenergy and fertilizer industries. The Company operates through three segments: Feed Ingredients, Food Ingredients and Fuel Ingredients. The Company collects and transforms all aspects of animal by-product streams into useable and specialty ingredients, such as gelatin, edible fats, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, organic fertilizers, yellow grease, fuel feedstocks, green energy, natural casings and hides. In addition, the Company provides grease trap services to food service establishments, environmental services to food processors and sells restaurant cooking oil delivery and collection equipment.
About Sharps Compliance Corp
Sharps Compliance Corp. is a provider of waste management services, including medical, pharmaceutical and hazardous. The Company’s solutions include Sharps Recovery System, TakeAway Medication Recovery System, MedSafe, Route-Based Pickup Service, TakeAway Recycle System, ComplianceTRAC, Universal Waste Shipback Systems and Other Solutions. The Company’s solutions facilitate the collection, containment, transportation and treatment of various types of healthcare-related materials, including hypodermic needles, lancets and other devices or objects used to puncture or lacerate the skin, or sharps, hazardous waste and unused consumer dispensed medications and over-the-counter drugs. It assists its customers in determining which of its solution offerings fit for the collection, containment, return transportation and treatment of medical waste, used healthcare materials, pharmaceutical waste, hazardous waste and unused dispensed medications. It provides tracking and reporting tools.
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