After ADM’s 16% Climb in a Month, DAR Looks Like the Stronger Long-Term Play
Darling Ingredients (DAR) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Archer-Daniels Midland (ADM), suggesting you may be better off investing in DAR
- DAR’s quarterly revenue growth was 1.8%, vs. ADM’s -4.9%.
- In addition, its Last 3-Year Average revenue growth came in at 2.7%, ahead of ADM’s -4.0%.
- DAR leads on profitability over both periods – LTM margin of 5.7% and 3-year average of 7.0%.
ADM procures, transports, processes, and markets agricultural commodities and ingredients across Ag Services, Carbohydrate Solutions, and Nutrition segments for food, feed, energy, and industrial uses. DAR develops and sells natural ingredients from bio-nutrients, converting used oils, animal fats, and bakery residues into valuable feed, food, and fuel products.
Valuation & Performance Overview
| ADM | DAR | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 19.2 | 16.5 | DAR |
| Revenue Growth | |||
| Last Quarter | -4.9% | 1.8% | DAR |
| Last 12 Months | -6.8% | -6.8% | ADM |
| Last 3 Year Average | -4.0% | 2.7% | DAR |
| Operating Margins | |||
| Last 12 Months | 1.9% | 5.7% | DAR |
| Last 3 Year Average | 3.1% | 7.0% | DAR |
| Momentum | |||
| Last 3 Year Return | -24.9% | -56.4% | ADM |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: ADM Revenue Comparison | DAR Revenue Comparison
See more margin details: ADM Operating Income Comparison | DAR Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell DAR Stock to see if Darling Ingredients’s edge holds up under the hood or if Archer-Daniels Midland still has cards to play (see Buy or Sell ADM Stock).
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| ADM Return | 12% | 37% | 40% | -20% | -28% | 27% | 59% | ||
| DAR Return | 105% | 20% | -10% | -20% | -32% | 2% | 24% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 11% | 100% | <=== | |
| Monthly Win Rates [3] | |||||||||
| ADM Win Rate | 67% | 67% | 67% | 33% | 25% | 71% | 55% | ||
| DAR Win Rate | 75% | 58% | 50% | 50% | 42% | 43% | 53% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 57% | 62% | <=== | |
| Max Drawdowns [4] | |||||||||
| ADM Max Drawdown | -36% | -2% | 0% | -24% | -29% | -16% | -18% | ||
| DAR Max Drawdown | -50% | -1% | -18% | -36% | -34% | -18% | -26% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 8/29/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read DAR Dip Buyer Analyses and ADM Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.