WallStSmart

Darling Ingredients Inc (DAR)vsHormel Foods Corporation (HRL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Hormel Foods Corporation generates 94% more annual revenue ($12.22B vs $6.31B). HRL leads profitability with a 3.8% profit margin vs 3.5%. HRL appears more attractively valued with a PEG of 1.85. HRL earns a higher WallStSmart Score of 49/100 (D+).

DAR

Hold

46

out of 100

Grade: D+

Growth: 3.3Profit: 4.5Value: 4.0Quality: 6.0
Piotroski: 5/9Altman Z: 1.86

HRL

Hold

49

out of 100

Grade: D+

Growth: 2.0Profit: 5.0Value: 6.7Quality: 7.0
Piotroski: 4/9Altman Z: 2.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DARUndervalued (+14.9%)

Margin of Safety

+14.9%

Fair Value

$58.29

Current Price

$59.45

$1.16 discount

UndervaluedFair: $58.29Overvalued
HRLUndervalued (+48.1%)

Margin of Safety

+48.1%

Fair Value

$46.15

Current Price

$23.62

$22.53 discount

UndervaluedFair: $46.15Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DAR1 strengths · Avg: 8.0/10
Price/BookValuation
1.9x8/10

Reasonable price relative to book value

HRL1 strengths · Avg: 8.0/10
Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Areas to Watch

DAR4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.864/10

Grey zone — moderate risk

Return on EquityProfitability
4.6%3/10

ROE of 4.6% — below average capital efficiency

Profit MarginProfitability
3.5%3/10

3.5% margin — thin

PEG RatioValuation
4.312/10

Expensive relative to growth rate

HRL4 concerns · Avg: 3.5/10
PEG RatioValuation
1.854/10

Expensive relative to growth rate

P/E RatioValuation
29.1x4/10

Moderate valuation

Return on EquityProfitability
5.9%3/10

ROE of 5.9% — below average capital efficiency

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : DAR

The strongest argument for DAR centers on Price/Book. Revenue growth of 12.3% demonstrates continued momentum.

Bull Case : HRL

The strongest argument for HRL centers on Price/Book.

Bear Case : DAR

The primary concerns for DAR are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 41.3x leaves little room for execution misses. Thin 3.5% margins leave little buffer for downturns.

Bear Case : HRL

The primary concerns for HRL are PEG Ratio, P/E Ratio, Return on Equity. Thin 3.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

DAR carries more volatility with a beta of 1.03 — expect wider price swings.

DAR is growing revenue faster at 12.3% — sustainability is the question.

HRL generates stronger free cash flow (97M), providing more financial flexibility.

Monitor PACKAGED FOODS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

HRL scores higher overall (49/100 vs 46/100). Both earn "Hold" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Darling Ingredients Inc

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Darling Ingredients Inc. develops, produces and sells natural ingredients from edible and non-edible bio-nutrients. The company is headquartered in Irving, Texas.

Visit Website →

Hormel Foods Corporation

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Hormel Foods Corporation is an American company founded in 1891 in Austin, Minnesota, by George A. Hormel as George A. Hormel & Company. Originally focusing on the packaging and selling of ham, Spam, sausage and other pork, chicken, beef and lamb products to consumers; by the 1980s, Hormel began offering a wider range of packaged and refrigerated foods.

Want to dig deeper into these stocks?