Financial Contrast: Darling Ingredients (NYSE:DAR) versus Kraft Heinz (NASDAQ:KHC)

Darling Ingredients (NYSE:DAR) and Kraft Heinz (NASDAQ:KHC) are both consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.

Valuation & Earnings

This table compares Darling Ingredients and Kraft Heinz”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Darling Ingredients	$6.78 billion	1.28	$62.80 million	$5.26	10.65
Kraft Heinz	$24.78 billion	1.20	-$5.85 billion	($2.92)	-8.59

Darling Ingredients has higher earnings, but lower revenue than Kraft Heinz. Kraft Heinz is trading at a lower price-to-earnings ratio than Darling Ingredients, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Darling Ingredients and Kraft Heinz’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Darling Ingredients	12.48%	17.40%	8.37%
Kraft Heinz	-13.64%	7.10%	3.60%

Risk and Volatility

Darling Ingredients has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Kraft Heinz has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500.

Institutional & Insider Ownership

94.4% of Darling Ingredients shares are held by institutional investors. Comparatively, 78.2% of Kraft Heinz shares are held by institutional investors. 1.9% of Darling Ingredients shares are held by company insiders. Comparatively, 0.2% of Kraft Heinz shares are held by company 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Darling Ingredients and Kraft Heinz, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Darling Ingredients	0	2	9	1	2.92
Kraft Heinz	5	10	1	0	1.75

Darling Ingredients currently has a consensus price target of $73.80, indicating a potential upside of 31.79%. Kraft Heinz has a consensus price target of $23.80, indicating a potential downside of 5.11%. Given Darling Ingredients’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Darling Ingredients is more favorable than Kraft Heinz.

Summary

Darling Ingredients beats Kraft Heinz on 14 of the 15 factors compared between the two stocks.

About Darling Ingredients

Darling Ingredients Inc. collects and transforms animal by-products and other organic materials into ingredients and products used in food, animal feed, fuel and other markets. Its operations help convert materials from meat processing, food production and used cooking oils into usable fats, proteins, oils and other ingredients. The company’s businesses span feed ingredients, food ingredients and fuel ingredients. Products include animal nutrition ingredients, gelatin and collagen, and fats and oils used in food and industrial applications.

About Kraft Heinz

The Kraft Heinz Company (NASDAQ: KHC) manufactures and markets food and beverage products for consumers, retailers and food-service businesses. Its portfolio includes condiments and sauces, cheese and dairy products, packaged meals, meats, snacks and beverages, sold under brands such as Heinz, Kraft, Oscar Mayer and Philadelphia. The company was formed in 2015 through the merger of Kraft Foods Group and H.J. Heinz Company. It serves customers in the United States and other markets around the world, with its business spanning North America and international regions.