Corteva (NYSE:CTVA) versus Cresud S.A.C.I.F. y A. (NASDAQ:CRESY) Financial Review

Corteva (NYSE:CTVA) and Cresud S.A.C.I.F. y A. (NASDAQ:CRESY) are both consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Risk and Volatility

Corteva has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Cresud S.A.C.I.F. y A. has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Profitability

This table compares Corteva and Cresud S.A.C.I.F. y A.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Corteva	6.77%	7.84%	4.67%
Cresud S.A.C.I.F. y A.	10.10%	4.42%	1.92%

Institutional & Insider Ownership

81.5% of Corteva shares are owned by institutional investors. Comparatively, 12.9% of Cresud S.A.C.I.F. y A. shares are owned by institutional investors. 0.2% of Corteva shares are owned by insiders. Comparatively, 36.2% of Cresud S.A.C.I.F. y A. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for Corteva and Cresud S.A.C.I.F. y A., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corteva	0	3	11	0	2.79
Cresud S.A.C.I.F. y A.	0	0	0	0	0.00

Corteva presently has a consensus target price of $72.50, indicating a potential downside of 5.27%. Given Corteva’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Corteva is more favorable than Cresud S.A.C.I.F. y A..

Earnings and Valuation

This table compares Corteva and Cresud S.A.C.I.F. y A.”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corteva	$16.91 billion	3.09	$907.00 million	$1.64	46.66
Cresud S.A.C.I.F. y A.	$1.43 billion	0.46	$156.92 million	$1.15	9.36

Corteva has higher revenue and earnings than Cresud S.A.C.I.F. y A.. Cresud S.A.C.I.F. y A. is trading at a lower price-to-earnings ratio than Corteva, indicating that it is currently the more affordable of the two stocks.

Dividends

Corteva pays an annual dividend of $0.68 per share and has a dividend yield of 0.9%. Cresud S.A.C.I.F. y A. pays an annual dividend of $0.59 per share and has a dividend yield of 5.5%. Corteva pays out 41.5% of its earnings in the form of a dividend. Cresud S.A.C.I.F. y A. pays out 51.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Corteva has increased its dividend for 5 consecutive years.

Summary

Corteva beats Cresud S.A.C.I.F. y A. on 13 of the 17 factors compared between the two stocks.

About Corteva

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.

About Cresud S.A.C.I.F. y A.

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria, an agricultural company, engages in the production of agricultural commodities in Brazil and other Latin American countries. The company operates through Agricultural Business, and Business Urban Properties and Investments segments. It is also involved in the management, development, and ownership of shopping malls, office buildings, and hotels; sale of grain derivatives, such as flour and oil; production and sale of crops, such as soybean, sugarcane, wheat, corn, oilseed, and sunflower, as well as sorghum and peanuts; and breeding, purchasing, and/or fattening of cattle for sale to slaughterhouses and supermarkets. In addition, it leases its farms to third parties for agriculture, cattle breeding, and seed production; and offers agricultural services. The company was incorporated in 1936 and is headquartered in Buenos Aires, Argentina.