Critical Comparison: Darling Ingredients (DAR) & Its Competitors
Darling Ingredients (NYSE: DAR) is one of 50 publicly-traded companies in the “Food Processing” industry, but how does it compare to its peers? We will compare Darling Ingredients to similar businesses based on the strength of its analyst recommendations, dividends, earnings, valuation, risk, institutional ownership and profitability.
Institutional & Insider Ownership
95.7% of Darling Ingredients shares are held by institutional investors. Comparatively, 63.3% of shares of all “Food Processing” companies are held by institutional investors. 2.0% of Darling Ingredients shares are held by insiders. Comparatively, 12.2% of shares of all “Food Processing” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Darling Ingredients has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500. Comparatively, Darling Ingredients’ peers have a beta of 0.72, suggesting that their average stock price is 28% less volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Darling Ingredients and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Darling Ingredients Competitors||274||1525||1877||53||2.46|
Darling Ingredients presently has a consensus target price of $19.00, suggesting a potential upside of 4.11%. As a group, “Food Processing” companies have a potential downside of 4.48%. Given Darling Ingredients’ stronger consensus rating and higher probable upside, equities analysts clearly believe Darling Ingredients is more favorable than its peers.
Earnings and Valuation
This table compares Darling Ingredients and its peers revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Darling Ingredients||$3.52 billion||$428.51 million||35.79|
|Darling Ingredients Competitors||$8.38 billion||$1.05 billion||22.44|
Darling Ingredients’ peers have higher revenue and earnings than Darling Ingredients. Darling Ingredients is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This table compares Darling Ingredients and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Darling Ingredients Competitors||4.09%||11.39%||4.70%|
Darling Ingredients peers beat Darling Ingredients on 7 of the 13 factors compared.
Darling Ingredients Company Profile
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.
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