Critical Review: GLG Life Tech (OTCMKTS:GLGLF) versus Darling Ingredients (NYSE:DAR)

GLG Life Tech (OTCMKTS:GLGLF) and Darling Ingredients (NYSE:DAR) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Valuation & Earnings

This table compares GLG Life Tech and Darling Ingredients”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GLG Life Tech	$10.62 million	0.00	$48.29 million	$0.23	N/A
Darling Ingredients	$5.72 billion	0.97	$278.88 million	$0.67	52.17

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

Profitability

This table compares GLG Life Tech and Darling Ingredients’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GLG Life Tech	105.86%	N/A	-74.39%
Darling Ingredients	1.84%	2.39%	1.08%

Volatility & Risk

GLG Life Tech has a beta of 2.2, suggesting that its share price is 120% more volatile than the S&P 500. Comparatively, Darling Ingredients has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Institutional & Insider Ownership

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for GLG Life Tech and Darling Ingredients, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GLG Life Tech	0	0	0	0	0.00
Darling Ingredients	1	3	9	1	2.71

Darling Ingredients has a consensus target price of $45.33, indicating a potential upside of 29.68%. Given Darling Ingredients’ stronger consensus rating and higher possible upside, analysts plainly believe Darling Ingredients is more favorable than GLG Life Tech.

Summary

Darling Ingredients beats GLG Life Tech on 11 of the 13 factors compared between the two stocks.

About GLG Life Tech

GLG Life Tech Corporation researches for, develops, grows, refines, and produces natural sweeteners extracted from the stevia plant and monk fruit in Canada and internationally. It also offers P-Pro Plus, a pea protein product; REB M GOLD, a bioconverted Rebaudioside M and Rebaudioside D. sweetener; and natural ingredients. It serves in the food and beverage industry. The company was formerly known as GLG Life Tech Limited and changed its name to GLG Life Tech Corporation in March 2007. GLG Life Tech Corporation was incorporated in 1998 and is headquartered in Richmond, Canada.

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.