Corteva (CTVA) and Its Peers Critical Review

Corteva (NYSE:CTVAGet Rating) is one of 32 publicly-traded companies in the “Agricultural production – crops” industry, but how does it contrast to its competitors? We will compare Corteva to related companies based on the strength of its earnings, dividends, institutional ownership, analyst recommendations, valuation, profitability and risk.

Valuation & Earnings

This table compares Corteva and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Corteva $15.66 billion $1.76 billion 25.92
Corteva Competitors $1.63 billion $92.76 million 1.12

Corteva has higher revenue and earnings than its competitors. Corteva is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Corteva and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Corteva 10.31% 7.26% 4.46%
Corteva Competitors -180.98% -13.81% -9.50%

Risk and Volatility

Corteva has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Corteva’s competitors have a beta of -28.78, suggesting that their average share price is 2,978% less volatile than the S&P 500.

Dividends

Corteva pays an annual dividend of $0.60 per share and has a dividend yield of 1.0%. Corteva pays out 25.3% of its earnings in the form of a dividend. As a group, “Agricultural production – crops” companies pay a dividend yield of 3.1% and pay out 45.4% of their earnings in the form of a dividend. Corteva has raised its dividend for 2 consecutive years.

Analyst Recommendations

This is a summary of recent recommendations for Corteva and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Corteva 0 1 14 0 2.93
Corteva Competitors 38 127 423 23 2.71

Corteva presently has a consensus price target of $68.60, suggesting a potential upside of 11.69%. As a group, “Agricultural production – crops” companies have a potential upside of 191.13%. Given Corteva’s competitors higher possible upside, analysts clearly believe Corteva has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

79.0% of Corteva shares are held by institutional investors. Comparatively, 26.9% of shares of all “Agricultural production – crops” companies are held by institutional investors. 0.1% of Corteva shares are held by insiders. Comparatively, 20.6% of shares of all “Agricultural production – crops” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Corteva beats its competitors on 11 of the 15 factors compared.

About Corteva

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Corteva, Inc. operates in the agriculture business. It operates through two segments, Seed and Crop Protection. The Seed segment develops and supplies advanced germplasm and traits that produce optimum yield for farms. It offers trait technologies that enhance resistance to weather, disease, insects, and herbicides used to control weeds, as well as food and nutritional characteristics. This segment also provides digital solutions that assist farmer decision-making with a view to optimize product selection, and maximize yield and profitability. The Crop Protection segment offers products that protect against weeds, insects and other pests, and diseases, as well as enhances crop health above and below ground through nitrogen management and seed-applied technologies. This segment provides herbicides, insecticides, nitrogen stabilizers, and pasture and range management herbicides. It serves agricultural input industry. The company operates in the United States, Canada, Latin America, the Asia Pacific, Europe, the Middle East, and Africa. Corteva, Inc. was incorporated in 2018 and is headquartered in Indianapolis, Indiana.

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