Critical Contrast: Mission Produce (NASDAQ:AVO) versus Corteva (NYSE:CTVA)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Corteva	9.19%	9.37%	5.62%
Mission Produce	2.73%	7.89%	4.65%

Analyst Recommendations

This is a breakdown of current ratings for Corteva and Mission Produce, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corteva	0	7	15	0	2.68
Mission Produce	0	2	2	0	2.50

Corteva presently has a consensus target price of $78.05, indicating a potential upside of 17.89%. Mission Produce has a consensus target price of $17.00, indicating a potential upside of 41.31%. Given Mission Produce’s higher probable upside, analysts plainly believe Mission Produce is more favorable than Corteva.

Institutional & Insider Ownership

81.5% of Corteva shares are held by institutional investors. Comparatively, 63.6% of Mission Produce shares are held by institutional investors. 0.1% of Corteva shares are held by company insiders. Comparatively, 35.4% of Mission Produce shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Corteva has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Mission Produce has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corteva	$16.91 billion	2.65	$907.00 million	$2.34	28.29
Mission Produce	$1.23 billion	0.69	$36.70 million	$0.54	22.28

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

Summary

Corteva beats Mission Produce on 12 of the 14 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 Mission Produce

Mission Produce, Inc. engages in the sourcing, farming, packaging, marketing, and distribution of avocados, mangoes, and blueberries to food retailers, distributors, and foodservice customers in the United States and internationally. The company operates through three segments, Marketing and Distribution; International Farming; and Blueberries. It also provides ripening, bagging, custom packing, logistical management, and quality assurance services. In addition, the company offers merchandising and promotional support, and insights on market trends, and training services. Mission Produce, Inc. was founded in 1983 and is headquartered in Oxnard, California.