5 Biggest Agriculture Companies in the World

4. Corteva, Inc. (NYSE:CTVA)

Market Capitalization as of March 23: $42.071 billion

Number of Hedge Fund Holders: 42

Corteva, Inc. (NYSE:CTVA) is an Indiana-based agribusiness that aims to optimize crop yields by offering crop protection technologies. These crop solutions improve weather resistance, control disease, and enhance the nutritional characteristics and integrity of crops.

For 2021, Corteva, Inc. (NYSE:CTVA) reported full-year revenue of $15.6 billion, and a net income of $1.75 billion. The Q4 GAAP EPS was disclosed in February, amounting to $0.22, above market consensus by $0.20. 

Corteva, Inc. (NYSE:CTVA) is one of the top gainers from the Russia-Ukraine conflict, given the already tight agriculture markets. On March 22, Citi analyst P.J. Juvekar lifted the price target on Corteva, Inc. (NYSE:CTVA) to $66 from $59 and kept a Buy rating on the shares.

Among the hedge funds tracked by Insider Monkey, 42 hedge funds had placed long bets on Corteva, Inc. (NYSE:CTVA) at the end of the fourth quarter of 2021, compared to 41 funds in the third quarter. Jeffrey Smith’s Starboard Value LP is the biggest shareholder of the company, with 8.90 million shares worth $420.8 million. 

Here is what Rhizome Partners had to say about Corteva, Inc. (NYSE:CTVA) in its Q1 2021 investor letter:

“We are still getting used to the higher multiples that investors will pay for larger market cap and pure play companies such as Corteva. We do understand the market’s rationale. For example, Corteva operates in a duopoly with Monsanto, owned by Bayer AG, that provides genetically modified seeds and pesticides. With some operating leverage, the company can probably grow FCF at 4-6% a year. This brings the total return close to the long-term return of the S&P 500 index of 10%. Through trial and error, we have come to appreciate how scale, higher market share, route densities, switching costs, and collaborative relationships amongst major industry players can contribute to sustained high returns on invested capital.”