Darling Ingredients Inc. (DAR) vs Kraft Heinz Company (KHC)

Darling Ingredients Inc. and Kraft Heinz Company are both Packaged Foods companies. Kraft Heinz Company is the larger, with a market value of $28.5B against $9.7B — 2.9× the size. Kraft Heinz Company has negative trailing earnings, so its P/E is not meaningful; Darling Ingredients Inc. trades at 16.3×. Darling Ingredients Inc. grew revenue faster over the last twelve months: 14.9% against −1.62%. Darling Ingredients Inc. has the higher net margin (9.13% vs −13.6%) and the higher return on invested capital (6.55% vs −3.79%). Across the 21 metrics below, Kraft Heinz Company leads on 11 and Darling Ingredients Inc. on 10.

Valuation

Metric DAR KHC Packaged Foods median
P/E 16.26 n/m 12.69
P/S 1.48 1.12 0.61
P/B 1.83 0.78 1.47
Price to free cash flow 10.80 7.62 8.50
EV/EBITDA 9.10 8.47 8.20
EV/Sales 2.06 1.78 0.85
Earnings yield 6.15% (12.11%) 0.00%
Free cash flow yield 9.26% 13.13% 6.05%

Profitability

Metric DAR KHC Packaged Foods median
Gross margin 26.33% 33.37% 27.54%
Operating margin 14.52% (12.76%) 0.00%
Net margin 9.13% (13.64%) 0.00%
Free cash flow margin 13.73% 15.33% 2.56%
Return on equity 11.96% (8.75%) 0.00%
Return on assets 5.63% (4.39%) 0.00%
Return on invested capital 6.55% (3.79%) 0.00%

Growth

Metric DAR KHC Packaged Foods median
Revenue growth (TTM) 14.85% (1.62%) 5.69%
EPS growth (last fiscal year) (77.46%) (318.14%) —
Revenue growth, 5-year CAGR 11.43% (0.97%) 3.81%
Net income growth, 5-year CAGR (26.70%) 0.00% 0.00%

Health

Metric DAR KHC Packaged Foods median
Debt to equity 0.74 0.53 0.26
Current ratio 1.56 1.06 1.64
Net debt to EBITDA 4.87 3.13 0.87

Dividend

Metric DAR KHC Packaged Foods median
Dividend yield — 4.38% 3.21%
Payout ratio 0.00 0.63 0.00

Size

Metric DAR KHC Packaged Foods median
Market cap 9.74b 28.45b 245.45m

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