CIMG (NASDAQ:IMG) and Darling Ingredients (NYSE:DAR) Critical Review

CIMG (NASDAQ:IMG) and Darling Ingredients (NYSE:DAR) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, dividends, profitability, earnings and risk.

Analyst Recommendations

This is a summary of current ratings and recommmendations for CIMG and Darling Ingredients, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CIMG	1	0	0	0	1.00
Darling Ingredients	0	2	9	1	2.92

Darling Ingredients has a consensus target price of $73.80, suggesting a potential upside of 46.97%. Given Darling Ingredients’ stronger consensus rating and higher possible upside, analysts clearly believe Darling Ingredients is more favorable than CIMG.

Earnings & Valuation

This table compares CIMG and Darling Ingredients”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CIMG	$10.30 million	0.21	-$4.88 million	($4.00)	-0.06
Darling Ingredients	$6.14 billion	1.29	$62.80 million	$5.26	9.55

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

Volatility and Risk

CIMG has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Darling Ingredients has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.

Institutional and Insider Ownership

23.4% of CIMG shares are held by institutional investors. Comparatively, 94.4% of Darling Ingredients shares are held by institutional investors. 0.1% of CIMG shares are held by company insiders. Comparatively, 1.9% of Darling Ingredients shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CIMG	N/A	-23.59%	-15.90%
Darling Ingredients	12.48%	17.76%	8.38%

Summary

Darling Ingredients beats CIMG on 14 of the 15 factors compared between the two stocks.

About CIMG

CIMG Inc. is a digital marketing, sales and distribution company for various consumer products with focuses on food and beverages. CIMG Inc., formerly known as NUZEE INC., is based in BEIJING.

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.