Darling Ingredients (NYSE:DAR) & Australian Oilseeds (NASDAQ:COOT) Critical Review

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Australian Oilseeds	N/A	N/A	N/A
Darling Ingredients	4.88%	6.04%	2.60%

Valuation & Earnings

This table compares Australian Oilseeds and Darling Ingredients”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Australian Oilseeds	$22.12 million	1.48	-$14.21 million	N/A	N/A
Darling Ingredients	$5.72 billion	1.12	$647.73 million	$1.73	23.20

Darling Ingredients has higher revenue and earnings than Australian Oilseeds.

Institutional & Insider Ownership

13.0% of Australian Oilseeds shares are owned by institutional investors. Comparatively, 94.4% of Darling Ingredients shares are owned by institutional investors. 57.7% of Australian Oilseeds shares are owned by company insiders. Comparatively, 2.6% of Darling Ingredients shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for Australian Oilseeds and Darling Ingredients, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Australian Oilseeds	0	0	0	0	0.00
Darling Ingredients	0	1	8	0	2.89

Darling Ingredients has a consensus target price of $53.22, suggesting a potential upside of 32.62%. Given Darling Ingredients’ stronger consensus rating and higher possible upside, analysts clearly believe Darling Ingredients is more favorable than Australian Oilseeds.

Volatility and Risk

Australian Oilseeds has a beta of -0.18, indicating that its share price is 118% less volatile than the S&P 500. Comparatively, Darling Ingredients has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.

Summary

Darling Ingredients beats Australian Oilseeds on 10 of the 12 factors compared between the two stocks.

About Australian Oilseeds

Australian Oilseeds Holdings Ltd. engages in the manufacture and sale oil seeds through its subsidiaries. It focuses on acquiring, engaging in a share exchange, share reconstruction, and amalgamation with, purchasing all or substantially all the assets of, entering contractual arrangements with, or engaging in any other similar business combination with one or more businesses or entities. The company was founded on December 29, 2022 and is headquartered in Cootamundra, Australia.

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.