Trinseo (NYSE:TSE – Get Free Report) and Corteva (NYSE:CTVA – Get Free Report) are both materials companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, profitability, earnings, institutional ownership and risk.
Profitability
This table compares Trinseo and Corteva’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Trinseo | -13.15% | N/A | -11.72% |
| Corteva | 5.66% | 10.18% | 6.00% |
Risk and Volatility
Trinseo has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, Corteva has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.
Earnings & Valuation
This table compares Trinseo and Corteva”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Trinseo | $3.13 billion | 0.00 | -$348.50 million | ($11.55) | -0.02 |
| Corteva | $17.40 billion | 0.47 | $1.09 billion | $1.51 | 8.04 |
Corteva has higher revenue and earnings than Trinseo. Trinseo is trading at a lower price-to-earnings ratio than Corteva, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Trinseo and Corteva, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Trinseo | 1 | 2 | 0 | 0 | 1.67 |
| Corteva | 1 | 6 | 16 | 0 | 2.65 |
Trinseo presently has a consensus price target of $1.00, indicating a potential upside of 334.78%. Corteva has a consensus price target of $60.59, indicating a potential upside of 399.27%. Given Corteva’s stronger consensus rating and higher probable upside, analysts clearly believe Corteva is more favorable than Trinseo.
Insider & Institutional Ownership
82.7% of Trinseo shares are owned by institutional investors. Comparatively, 81.5% of Corteva shares are owned by institutional investors. 4.5% of Trinseo shares are owned by company insiders. Comparatively, 0.2% of Corteva shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Dividends
Trinseo pays an annual dividend of $0.04 per share and has a dividend yield of 17.4%. Corteva pays an annual dividend of $0.72 per share and has a dividend yield of 5.9%. Trinseo pays out -0.3% of its earnings in the form of a dividend. Corteva pays out 47.7% 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. Trinseo has increased its dividend for 1 consecutive years and Corteva has increased its dividend for 5 consecutive years. Trinseo is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Corteva beats Trinseo on 12 of the 17 factors compared between the two stocks.
About Trinseo
Trinseo plc (NYSE:TSE) is a global materials company that develops, manufactures and sells specialty and commodity polymers, latex binders and synthetic rubber. Its materials are used in products across industries such as packaging, consumer goods, automotive, construction, appliances, electronics and healthcare. The company’s product portfolio has included plastics such as acrylonitrile butadiene styrene (ABS), polystyrene and polycarbonate, as well as specialty resins, acrylic products, latex binders and rubber materials.
About Corteva
Corteva, Inc. is an agricultural science company that develops and supplies products and services for farmers. Its business focuses on seeds and crop protection, including technologies intended to help improve crop performance and manage weeds, insects, and plant diseases. Its seed portfolio includes corn, soybean, and other crop varieties, sold under brands such as Pioneer and Brevant. Corteva’s crop protection offerings include herbicides, insecticides, fungicides, and biological products, alongside digital tools and services that support farm decision-making.
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