Contrasting Campbell Soup (CPB) and Darling Ingredients (DAR)
Campbell Soup (NYSE: CPB) and Darling Ingredients (NYSE:DAR) are both mid-cap consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.
Valuation and Earnings
This table compares Campbell Soup and Darling Ingredients’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Campbell Soup||$7.91 billion||1.95||$1.61 billion||$1.59||31.96|
|Darling Ingredients||$3.52 billion||0.82||$428.51 million||$0.51||34.24|
Campbell Soup has higher revenue and earnings than Darling Ingredients. Campbell Soup is trading at a lower price-to-earnings ratio than Darling Ingredients, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Campbell Soup has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500. Comparatively, Darling Ingredients has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Campbell Soup and Darling Ingredients, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Campbell Soup presently has a consensus price target of $56.76, indicating a potential upside of 11.71%. Darling Ingredients has a consensus price target of $18.60, indicating a potential upside of 6.53%. Given Campbell Soup’s higher probable upside, analysts clearly believe Campbell Soup is more favorable than Darling Ingredients.
Insider & Institutional Ownership
43.9% of Campbell Soup shares are held by institutional investors. Comparatively, 95.4% of Darling Ingredients shares are held by institutional investors. 37.3% of Campbell Soup shares are held by insiders. Comparatively, 2.0% of Darling Ingredients 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.
Campbell Soup pays an annual dividend of $1.40 per share and has a dividend yield of 2.8%. Darling Ingredients does not pay a dividend. Campbell Soup pays out 88.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Campbell Soup and Darling Ingredients’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Campbell Soup beats Darling Ingredients on 10 of the 16 factors compared between the two stocks.
Campbell Soup Company Profile
Campbell Soup Company is a food company, which manufactures and markets food products. The Company’s segments include Americas Simple Meals and Beverages; Global Biscuits and Snacks, and Campbell Fresh. The Americas Simple Meals and Beverages segment includes the retail and food service channel businesses. The segment includes the products, such as Campbell’s condensed and ready-to-serve soups; Swanson broth and stocks; Prego pasta sauces; Pace Mexican sauces; Campbell’s gravies, pasta, beans and dinner sauces; Plum food and snacks; V8 juices and beverages, and Campbell’s tomato juice. The Global Biscuits and Snacks segment includes Pepperidge Farm cookies, crackers, bakery and frozen products; Arnott’s biscuits, and Kelsen cookies. The Campbell Fresh segment includes Bolthouse Farms fresh carrots, carrot ingredients, refrigerated beverages and refrigerated salad dressings; Garden Fresh Gourmet salsa, hummus, dips and tortilla chips, and the United States refrigerated soup business.
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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