Darling Ingredients Inc. (DAR) vs Lamb Weston (LW)

Darling Ingredients Inc. and Lamb Weston are both Packaged Foods companies. Darling Ingredients Inc. and Lamb Weston are of similar size ($8.0B and $7.6B). Darling Ingredients Inc. trades at the lower P/E: 9.5× against 29.9×. Darling Ingredients Inc. grew revenue faster over the last twelve months: 16.0% against 2.58%. Darling Ingredients Inc. has the higher net margin (12.5% vs 3.85%) and the lower return on invested capital (0.00% vs 5.80%). Across the 22 metrics below, Darling Ingredients Inc. leads on 12 and Lamb Weston on 10.

Valuation

Metric DAR LW Packaged Foods median
P/E 9.51 29.92 12.84
P/S 1.18 1.15 0.67
P/B 1.51 4.22 1.58
Price to free cash flow 8.90 17.72 8.97
EV/EBITDA 7.95 12.38 8.34
EV/Sales 1.74 1.72 0.97
Earnings yield 10.51% 3.34% 2.16%
Free cash flow yield 11.23% 5.64% 5.54%

Profitability

Metric DAR LW Packaged Foods median
Gross margin 26.79% 19.38% 28.37%
Operating margin 17.90% 7.80% 2.53%
Net margin 12.48% 3.85% 0.53%
Free cash flow margin 0.00% 6.49% 2.31%
Return on equity 0.00% 14.17% 0.00%
Return on assets 0.00% 3.50% 0.00%
Return on invested capital 0.00% 5.80% 0.00%

Growth

Metric DAR LW Packaged Foods median
Revenue growth (TTM) 15.95% 2.58% 3.59%
EPS growth (last fiscal year) (77.46%) (16.80%) 4.57%
Revenue growth, 5-year CAGR 11.43% 12.49% 3.81%
Net income growth, 5-year CAGR (26.70%) (1.81%) 0.00%

Health

Metric DAR LW Packaged Foods median
Debt to equity 0.74 2.17 0.18
Current ratio 1.56 1.45 1.84
Net debt to EBITDA 4.87 3.89 0.73

Dividend

Metric DAR LW Packaged Foods median
Dividend yield — 2.75% 3.68%
Payout ratio — 0.83 0.62

Size

Metric DAR LW Packaged Foods median
Market cap 8.00b 7.59b 268.23m

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