WallStSmart

Darling Ingredients Inc (DAR)vsKraft Heinz Co (KHC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Kraft Heinz Co generates 296% more annual revenue ($24.94B vs $6.31B). DAR leads profitability with a 3.5% profit margin vs -23.4%. KHC appears more attractively valued with a PEG of 0.99. KHC earns a higher WallStSmart Score of 51/100 (C-).

DAR

Hold

45

out of 100

Grade: D

Growth: 3.3Profit: 4.5Value: 4.7Quality: 4.8
Piotroski: 3/9

KHC

Buy

51

out of 100

Grade: C-

Growth: 2.0Profit: 4.5Value: 7.7Quality: 4.3
Piotroski: 4/9Altman Z: 0.91
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DARUndervalued (+26.7%)

Margin of Safety

+26.7%

Fair Value

$67.72

Current Price

$64.38

$3.34 discount

UndervaluedFair: $67.72Overvalued
KHCUndervalued (+37.6%)

Margin of Safety

+37.6%

Fair Value

$40.03

Current Price

$22.54

$17.49 discount

UndervaluedFair: $40.03Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DAR1 strengths · Avg: 8.0/10
Price/BookValuation
2.2x8/10

Reasonable price relative to book value

KHC3 strengths · Avg: 8.7/10
Price/BookValuation
0.6x10/10

Reasonable price relative to book value

PEG RatioValuation
0.998/10

Growing faster than its price suggests

Free Cash FlowQuality
$1.17B8/10

Generating 1.2B in free cash flow

Areas to Watch

DAR4 concerns · Avg: 2.8/10
Return on EquityProfitability
1.5%3/10

ROE of 1.5% — below average capital efficiency

Profit MarginProfitability
3.5%3/10

3.5% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.312/10

Expensive relative to growth rate

KHC4 concerns · Avg: 2.0/10
Return on EquityProfitability
-12.8%2/10

ROE of -12.8% — below average capital efficiency

Revenue GrowthGrowth
-3.4%2/10

Revenue declined 3.4%

EPS GrowthGrowth
-69.2%2/10

Earnings declined 69.2%

Altman Z-ScoreHealth
0.912/10

Distress zone — elevated risk

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 : KHC

The strongest argument for KHC centers on Price/Book, PEG Ratio, Free Cash Flow. PEG of 0.99 suggests the stock is reasonably priced for its growth.

Bear Case : DAR

The primary concerns for DAR are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 46.2x leaves little room for execution misses. Thin 3.5% margins leave little buffer for downturns.

Bear Case : KHC

The primary concerns for KHC are Return on Equity, Revenue Growth, EPS Growth.

Key Dynamics to Monitor

DAR profiles as a value stock while KHC is a turnaround play — different risk/reward profiles.

DAR carries more volatility with a beta of 1.08 — expect wider price swings.

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

KHC generates stronger free cash flow (1.2B), providing more financial flexibility.

Bottom Line

KHC scores higher overall (51/100 vs 45/100). DAR offers better value entry with a 26.7% margin of safety. Both earn "Buy" 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.

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Kraft Heinz Co

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

The Kraft Heinz Company (KHC), commonly known as Kraft Heinz, is an American food company formed by the merger of Kraft Foods and Heinz, co-headquartered in Chicago, Illinois, and Pittsburgh, Pennsylvania.

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