Head to Head Review: Corteva (NYSE:CTVA) & Sensient Technologies (NYSE:SXT)

Corteva (NYSE:CTVA) and Sensient Technologies (NYSE:SXT) are both mid-cap materials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Volatility and Risk

Corteva has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, Sensient Technologies has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Profitability

This table compares Corteva and Sensient Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Corteva	5.66%	10.18%	6.00%
Sensient Technologies	9.27%	13.77%	7.33%

Dividends

Corteva pays an annual dividend of $0.72 per share and has a dividend yield of 5.8%. Sensient Technologies pays an annual dividend of $1.64 per share and has a dividend yield of 1.2%. Corteva pays out 47.7% of its earnings in the form of a dividend. Sensient Technologies pays out 44.2% 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. Corteva is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Corteva and Sensient Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corteva	1	6	16	0	2.65
Sensient Technologies	0	2	3	0	2.60

Corteva currently has a consensus price target of $60.59, indicating a potential upside of 387.61%. Sensient Technologies has a consensus price target of $140.67, indicating a potential upside of 6.07%. Given Corteva’s stronger consensus rating and higher probable upside, equities analysts plainly believe Corteva is more favorable than Sensient Technologies.

Insider & Institutional Ownership

81.5% of Corteva shares are owned by institutional investors. Comparatively, 90.9% of Sensient Technologies shares are owned by institutional investors. 0.2% of Corteva shares are owned by insiders. Comparatively, 1.3% of Sensient Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Corteva and Sensient Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corteva	$17.81 billion	0.47	$1.09 billion	$1.51	8.23
Sensient Technologies	$1.61 billion	3.50	$134.49 million	$3.71	35.75

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

Summary

Sensient Technologies beats Corteva on 10 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 Sensient Technologies

Sensient Technologies Corporation, together with its subsidiaries, develops, manufactures, and markets colors, flavors, and other specialty ingredients in North America, Europe, Asia, Australia, South America, and Africa. The company offers flavor-delivery systems, and compounded and blended products; ingredient products, such as essential oils, natural and synthetic flavors, and natural extracts; and chili powder, paprika, and chili pepper, as well as dehydrated vegetables comprising parsley, celery, and spinach to the food, beverage, and personal care industries. It also provides natural and synthetic color systems for use in foods, beverages, pharmaceuticals, and nutraceuticals; colors and other ingredients for personal care, such as active ingredients, solubilizers, and surface treated pigments; pharmaceutical and nutraceutical excipients, including colors, flavors, coatings, and nutraceutical ingredients; and technical colors for industrial applications under the Sensient Food Colors, Sensient Pharmaceutical Coating Systems, Sensient Cosmetic Technologies, and Sensient Specialty Markets trade names. Sensient Technologies Corporation was incorporated in 1882 and is headquartered in Milwaukee, Wisconsin.