Head-To-Head Analysis: Trinseo (NYSE:TSE) & Corteva (NYSE:CTVA)

Corteva (NYSE:CTVA) and Trinseo (NYSE:TSE) are both materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Earnings and Valuation

This table compares Corteva and Trinseo”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corteva	$17.40 billion	0.47	$1.09 billion	$1.51	8.04
Trinseo	$3.13 billion	0.00	-$348.50 million	($11.55)	-0.02

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.

Dividends

Corteva pays an annual dividend of $0.72 per share and has a dividend yield of 5.9%. Trinseo pays an annual dividend of $0.04 per share and has a dividend yield of 17.4%. Corteva pays out 47.7% of its earnings in the form of a dividend. Trinseo pays out -0.3% 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 raised its dividend for 5 consecutive years and Trinseo has raised its dividend for 1 consecutive years. Trinseo is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Corteva and Trinseo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Corteva	5.66%	10.18%	6.00%
Trinseo	-13.15%	N/A	-11.72%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Corteva and Trinseo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corteva	1	6	16	0	2.65
Trinseo	1	2	0	0	1.67

Corteva currently has a consensus price target of $60.59, suggesting a potential upside of 399.27%. Trinseo has a consensus price target of $1.00, suggesting a potential upside of 334.78%. Given Corteva’s stronger consensus rating and higher probable upside, analysts clearly believe Corteva is more favorable than Trinseo.

Institutional and Insider Ownership

81.5% of Corteva shares are held by institutional investors. Comparatively, 82.7% of Trinseo shares are held by institutional investors. 0.2% of Corteva shares are held by company insiders. Comparatively, 4.5% of Trinseo shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Corteva has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Trinseo has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.

Summary

Corteva beats Trinseo on 12 of the 17 factors compared between the two stocks.

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.

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.