Contrasting Corteva (NYSE:CTVA) & Farmmi (NASDAQ:FAMI)

Corteva (NYSE:CTVA) and Farmmi (NASDAQ:FAMI) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Volatility & Risk

Corteva has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Farmmi has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Corteva	6.50%	9.95%	5.91%
Farmmi	N/A	N/A	N/A

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corteva	$17.40 billion	3.04	$1.09 billion	$1.70	46.57
Farmmi	$27.97 million	0.29	-$53.10 million	N/A	N/A

Corteva has higher revenue and earnings than Farmmi.

Analyst Ratings

This is a summary of current recommendations and price targets for Corteva and Farmmi, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corteva	0	9	13	0	2.59
Farmmi	1	0	0	0	1.00

Corteva currently has a consensus target price of $88.14, indicating a potential upside of 11.34%. Given Corteva’s stronger consensus rating and higher possible upside, analysts clearly believe Corteva is more favorable than Farmmi.

Insider and Institutional Ownership

81.5% of Corteva shares are held by institutional investors. Comparatively, 0.3% of Farmmi shares are held by institutional investors. 0.2% of Corteva shares are held by insiders. Comparatively, 1.7% of Farmmi shares are held 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.

Summary

Corteva beats Farmmi on 10 of the 12 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 Farmmi

Farmmi, Inc., through its subsidiaries, engages in processing and sale of agricultural products in China, the United States, Japan, Canada, Europe, Korea, and the Middle East. The company offers Shiitake mushrooms, Mu Er mushrooms, and other edible fungi, such as bamboo fungi, agrocybe aegerila, pleurotus eryngii, grifola frondose, coprinus comatus, and hericium erinaceus, as well as dried edible fungi. It is also involved in trading of cotton, corn, and other agricultural products. The company's products are offered under Lishui Shangeng, Farmmi Liangpin, Forasen, and Puyangtang brands. It offers its products through local distributors to processing manufacturers, supermarkets, restaurants, cafeterias, and local specialty stores. The company was founded in 1994 and is headquartered in Lishui, China.