Darling Ingredients Inc. (DAR) and Lennar Corporation (LEN) both have caught the attention of the investment community that recently hit new highs. The recent price action of these companies has left many investors wondering what actions to take. To determine if one is a better investment than the other, we will compare the two names across various metrics, including growth, profitability, risk, return, dividends, and valuation.
The company has grown sales at a -3.20% annual rate over the past five years, putting it in the low growth category. DAR has a net profit margin of 9.30% and is more profitable than the average company in the Waste Management industry. In terms of efficiency, DAR has an asset turnover ratio of 0.66. This figure represents the amount of revenue a company generates per dollar of assets. DAR’s financial leverage ratio is 1, which indicates that the company’s asset base is primarily funded by equity capital. Company’s return on equity, which is really just the product of the company’s profit margin, asset turnover, and financial leverage ratios, is 13.20%, which is better than the Waste Management industry average ROE.
Darling Ingredients Inc. (DAR) free cash flow yield, which represents the amount of cash available to investors before dividends, expressed as a percentage of the stock price, is -0.46. All else equal, companies with higher FCF yields are viewed as cheaper. Company trades at a P/E ratio of 10.63, and is less expensive than the average stock in the Waste Management industry. The average investment recommendation for DAR, taken from a group of Wall Street Analysts, is 2.00, or a Moderate Sell.
Over the past six months, Darling Ingredients Inc. insiders have been net sellers, acquiring a net of 1.08 million shares. This implies that insiders have been feeling relatively bullish about the outlook for DAR. Insider activity and sentiment signals are important to monitor because they can shed light on how “risky” a stock is perceived to be at it’s current valuation. Knowing this, it makes sense to look at beta, a measure of market risk. DAR has a beta of 1.31 and therefore an above average level of market volatility.
Lennar Corporation (NYSE:LEN) operates in the Residential Construction segment of the Industrial Goods sector. LEN has increased sales at a 23.40% CAGR over the past five years, and is considered a medium growth stock.
Lennar Corporation (LEN) pays a dividend of 0.50, which translates to dividend yield of 1.17% based on the current price. According to this ratio, LEN should be able to continue making payouts at these levels. The company trades at a free cash flow yield of 3.08 and has a P/E of 6.80. Compared to the average company in the 7.56 space, LEN is relatively cheap. The average analyst recommendation for LEN is 2.20, or a Moderate Sell.
Lennar Corporation insiders have bought a net of 1.11 million shares during the past three months, which implies that the company’s top executives have been feeling bullish about the stock’s outlook. Finally, LEN’s beta of 1.30 indicates that the stock has an above average level of market risk.
Lennar Corporation (NYSE:LEN) scores higher than Darling Ingredients Inc. (NYSE:DAR) on 5 of the 6 measures compared between the two companies. LEN has the better fundamentals, scoring higher on metrics. LEN wins on valuation measures. LEN has better insider activity and sentiment signals.
"ingredients" - Google News
April 25, 2020 at 07:00PM
https://ift.tt/3eOyRf3
Going Through the Figures for Darling Ingredients Inc. (DAR) and Lennar Corporation (LEN)? - Weekly Oracle
"ingredients" - Google News
https://ift.tt/2Qstat1
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update
Bagikan Berita Ini
0 Response to "Going Through the Figures for Darling Ingredients Inc. (DAR) and Lennar Corporation (LEN)? - Weekly Oracle"
Post a Comment