Contrasting Darling Ingredients (NYSE:DAR) & Celsius (NASDAQ:CELH)

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

Institutional & Insider Ownership

94.4% of Darling Ingredients shares are owned by institutional investors. Comparatively, 61.0% of Celsius shares are owned by institutional investors. 2.6% of Darling Ingredients shares are owned by company insiders. Comparatively, 2.6% of Celsius shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Darling Ingredients has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Celsius has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.

Earnings and Valuation

This table compares Darling Ingredients and Celsius”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Darling Ingredients	$5.72 billion	0.87	$278.88 million	$0.66	47.86
Celsius	$1.36 billion	8.50	$145.07 million	$0.32	139.75

Darling Ingredients has higher revenue and earnings than Celsius. Darling Ingredients is trading at a lower price-to-earnings ratio than Celsius, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Darling Ingredients and Celsius, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Darling Ingredients	0	3	5	1	2.78
Celsius	1	3	14	0	2.72

Darling Ingredients currently has a consensus target price of $45.86, indicating a potential upside of 45.16%. Celsius has a consensus target price of $47.83, indicating a potential upside of 6.96%. Given Darling Ingredients’ stronger consensus rating and higher probable upside, analysts clearly believe Darling Ingredients is more favorable than Celsius.

Profitability

This table compares Darling Ingredients and Celsius’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Darling Ingredients	1.85%	2.37%	1.05%
Celsius	8.40%	42.12%	10.05%

Summary

Darling Ingredients beats Celsius on 8 of the 15 factors compared between the two stocks.

About Darling Ingredients

Darling Ingredients Inc. develops, produces, and sells natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America, and internationally. The company operates through three segments: Feed Ingredients, Food Ingredients, and Fuel Ingredients. It offers ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, industrial, fuel, bioenergy, and fertilizer industries. The company also collects and transforms various animal by-product streams into useable and specialty ingredients, such as collagen, edible fats, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, organic fertilizers, yellow grease, fuel feedstock, green energy, natural casings, and hides. In addition, it recovers and converts used cooking oil and animal fats, and residual bakery products into valuable feed and fuel ingredients. Further, the company provides environmental services, including grease trap collection and disposal services to food service establishments. It primarily operates under the Rendac, Sonac, FASA, Ecoson, Rousselot, Gelnex, and CTH brand names. The company was formerly known as Darling International Inc. and changed its name to Darling Ingredients Inc. in May 2014. Darling Ingredients Inc. was founded in 1882 and is headquartered in Irving, Texas.

About Celsius

Celsius Holdings, Inc. develops, processes, markets, distributes, and sells functional energy drinks and liquid supplements in the United States, Australia, New Zealand, Canadian, European, Middle Eastern, Asia-Pacific, and internationally. The company offers CELSIUS, a fitness drink or supplement designed to accelerate metabolism and burn body fat; various flavors and carbonated and non-carbonated functional energy drinks under the CELSIUS Originals and Vibe name, as well as functional energy drink under the CELSIUS Essentials and CELSIUS On-the-Go Powder names; and CELSIUS ready-to drink products. It distributes its products through direct-to-store delivery, distributors, supermarkets, convenience stores, drug stores, nutritional stores, and mass merchants, as well as health clubs, gyms, the military, and e-commerce websites. The company was formerly known as Vector Ventures, Inc. and changed its name to Celsius Holdings, Inc. in January 2007. Celsius Holdings, Inc. was founded in 2004 and is headquartered in Boca Raton, Florida.