Corteva (NYSE:CTVA) vs. Resonac (OTCMKTS:SHWDY) Critical Comparison

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

Institutional and Insider Ownership

81.5% of Corteva shares are owned by institutional investors. 0.2% of Corteva shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Resonac pays an annual dividend of $0.27 per share and has a dividend yield of 0.3%. Corteva pays an annual dividend of $0.72 per share and has a dividend yield of 5.8%. Resonac pays out 14.7% 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. Corteva has raised its dividend for 5 consecutive years. Corteva is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Resonac has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Corteva has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Resonac	4.05%	7.54%	2.61%
Corteva	5.66%	10.18%	6.00%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Resonac and Corteva, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Resonac	0	0	0	1	4.00
Corteva	1	6	16	0	2.65

Corteva has a consensus target price of $60.59, indicating a potential upside of 387.61%. Given Corteva’s higher possible upside, analysts clearly believe Corteva is more favorable than Resonac.

Earnings and Valuation

This table compares Resonac and Corteva”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Resonac	$9.01 billion	1.99	$194.51 million	$1.84	51.09
Corteva	$17.40 billion	0.48	$1.09 billion	$1.51	8.23

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

Summary

Corteva beats Resonac on 11 of the 18 factors compared between the two stocks.

About Resonac

Resonac Holdings Corporation operates as a chemical company in Japan, China, rest of Asia, and internationally. It operates through Semiconductor and Electronic Materials, Mobility, Innovation Enabling Materials, and Chemicals segments. The company offers gases and solvents, abatement systems and surface treatments, CMP slurries, and anti-charging materials; semiconductor-related materials, display and sensor-related materials, and films; base and photosensitive materials for PWBs; hard disks, SiCs, and optical semiconductors for use as electronic device components; and molded plastics/sheet-formed, powder metal, and aluminum products for automotives. It also provides lithium-ion batteries and mechanical carbon; ceramics, resins, cosmetic ingredients/medicinal additives, monomers, adhesives, tapes, and chromatography products; and elastomers. In addition, the company offers polyimides; HD media; friction materials; aluminum gravity casting products; packaging/containers for food, medicine, and electronics; electrical insulating epoxy resin molded products; zipper bags and tapes; titanium oxide and alumina; and elastic polishing grindstone. Further, it provides polypropylene and polyethylene; liquefied carbon dioxide, dry ice, and gas-related equipment; liquefied oxygen, nitrogen, and argon; molecular sieve; graphite electrodes; plasters, fireproofing pipes, and wall sidings; cement and moisture removal sheets; industrial materials; and FRP, coated sand, and separating mediums. Additionally, the company engages in the contract development and manufacturing of regenerative medicines; leasing of personal computers and other business equipment; outsourcing of salary, welfare, and finance-related business; and synthesis, analysis, and SDS preparation services. The company was formerly known as Showa Denko K.K. and changed its name to Resonac Holdings Corporation in January 2023. Resonac Holdings Corporation was incorporated in 1939 and is headquartered in Tokyo, Japan.

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.