Darling Ingredients (NYSE: DAR) and Central Garden & Pet (NASDAQ:CENT) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.
Earnings & Valuation
This table compares Darling Ingredients and Central Garden & Pet’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Darling Ingredients||$3.52 billion||0.73||$428.51 million||$0.51||30.59|
|Central Garden & Pet||$1.98 billion||0.90||$202.40 million||$1.33||25.76|
Darling Ingredients has higher revenue and earnings than Central Garden & Pet. Central Garden & Pet is trading at a lower price-to-earnings ratio than Darling Ingredients, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
94.5% of Darling Ingredients shares are held by institutional investors. Comparatively, 20.9% of Central Garden & Pet shares are held by institutional investors. 2.0% of Darling Ingredients shares are held by insiders. Comparatively, 11.6% of Central Garden & Pet shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings for Darling Ingredients and Central Garden & Pet, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Central Garden & Pet||0||1||3||0||2.75|
Darling Ingredients presently has a consensus price target of $18.60, suggesting a potential upside of 19.23%. Central Garden & Pet has a consensus price target of $38.33, suggesting a potential upside of 11.89%. Given Darling Ingredients’ stronger consensus rating and higher probable upside, equities analysts plainly believe Darling Ingredients is more favorable than Central Garden & Pet.
This table compares Darling Ingredients and Central Garden & Pet’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Central Garden & Pet||3.49%||13.66%||6.13%|
Volatility and Risk
Darling Ingredients has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, Central Garden & Pet has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500.
Darling Ingredients beats Central Garden & Pet on 8 of the 14 factors compared between the two stocks.
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.
Central Garden & Pet Company Profile
Central Garden & Pet Company is a marketer and producer of branded products and distributor of third party products in the pet and lawn and garden supplies industries in the United States. The Company operates in two segments: Pet segment and the Garden segment. It is a marketer and producer of pet supplies in the United States. In addition, its Pet segment operates sales and logistics networks in the industry strategically supporting its brands. Its principal pet supplies categories are dog and cat, aquatics, bird and small animal, wild bird feed and animal health products. The Company markets and produces various brands, including Pennington, The Rebels, AMDRO, Lilly Miller, Ironite, Sevin, and Over-N-Out. Its Garden segment operates a sales and logistics network that strategically supports its brands. The Company’s principal lawn and garden product lines include grass seed, wild bird feed and insect control products.
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