Darling Ingredients Inc. (DAR) vs McCormick & Company, Incorporated (MKC)

Darling Ingredients Inc. and McCormick & Company, Incorporated are both Packaged Foods companies. McCormick & Company, Incorporated is the larger, with a market value of $13.5B against $8.0B — 1.7× the size. McCormick & Company, Incorporated trades at the lower P/E: 9.0× against 9.5×. Darling Ingredients Inc. grew revenue faster over the last twelve months: 16.0% against 13.2%. McCormick & Company, Incorporated has the higher net margin (19.4% vs 12.5%) and the higher return on invested capital (5.90% vs 0.00%). Across the 22 metrics below, McCormick & Company, Incorporated leads on 12 and Darling Ingredients Inc. on 10.

Valuation

Metric DAR MKC Packaged Foods median
P/E 9.51 9.00 12.84
P/S 1.18 1.75 0.67
P/B 1.51 1.77 1.58
Price to free cash flow 8.90 14.48 8.97
EV/EBITDA 7.95 12.72 8.34
EV/Sales 1.74 2.18 0.97
Earnings yield 10.51% 11.11% 2.16%
Free cash flow yield 11.23% 6.91% 5.54%

Profitability

Metric DAR MKC Packaged Foods median
Gross margin 26.79% 39.06% 28.37%
Operating margin 17.90% 13.43% 2.53%
Net margin 12.48% 19.39% 0.53%
Free cash flow margin 0.00% 12.05% 2.31%
Return on equity 0.00% 22.30% 0.00%
Return on assets 0.00% 9.97% 0.00%
Return on invested capital 0.00% 5.90% 0.00%

Growth

Metric DAR MKC Packaged Foods median
Revenue growth (TTM) 15.95% 13.23% 3.59%
EPS growth (last fiscal year) (77.46%) 0.34% 4.57%
Revenue growth, 5-year CAGR 11.43% 4.08% 3.81%
Net income growth, 5-year CAGR (26.70%) 1.10% 0.00%

Health

Metric DAR MKC Packaged Foods median
Debt to equity 0.74 0.48 0.18
Current ratio 1.56 0.66 1.84
Net debt to EBITDA 4.87 2.70 0.73

Dividend

Metric DAR MKC Packaged Foods median
Dividend yield — 3.85% 3.68%
Payout ratio — 0.35 0.62

Size

Metric DAR MKC Packaged Foods median
Market cap 8.00b 13.47b 268.23m

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