Darling Ingredients (NYSE: DAR) and Penford Corp (NASDAQ:PENX) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Darling Ingredients and Penford Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Darling Ingredients 0 1 4 0 2.80
Penford Corp 0 0 0 0 N/A

Darling Ingredients currently has a consensus price target of $19.00, suggesting a potential upside of 7.34%.

Profitability

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

Net Margins Return on Equity Return on Assets
Darling Ingredients 2.39% 3.99% 1.77%
Penford Corp 2.06% 8.92% 3.56%

Institutional & Insider Ownership

95.7% of Darling Ingredients shares are held by institutional investors. 2.0% of Darling Ingredients shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Darling Ingredients and Penford Corp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Darling Ingredients $3.40 billion 0.86 $102.31 million $0.51 34.71
Penford Corp N/A N/A N/A N/A N/A

Darling Ingredients has higher revenue and earnings than Penford Corp.

Summary

Darling Ingredients beats Penford Corp on 5 of the 7 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 Penford Corp

Penford Corporation (Penford) is a developer, manufacturer and marketer of natural-based ingredient systems for food and industrial applications, including fuel grade ethanol. The Company has research and development capabilities, which are used in understanding the complex chemistry of carbohydrate-based materials and in developing applications to address customer needs. Penford operates in two business segments: Industrial Ingredients and Food Ingredients. Industrial Ingredients segment is a supplier of chemically modified starches to the paper and packaging industries. Industrial Ingredients also produces food grade corn starch for sale by the Company’s Food Ingredients business. Food Ingredients segment is a developer and manufacturer of specialty starches and dextrins to the food manufacturing and food service industries. This business is engaged is in leveraging the inherent characteristics from potato, corn, tapioca and rice to help improve its customers’ product performance.

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