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Jim Cramer: Mary writes: Can you please discuss the pros and cons of each DowDuPont DWDP entity? We've got Dow, which we know is already doing well because of the dividend. It's not at $2.77, that's my estimate.

Jeff Marks: Probably the biggest pro, income. The dividend yield.

Jim Cramer: Right, the biggest, yield is 4.8, still. People will continue to buy it. Crop protection hurt by flood. Expectation's really low. The crop protection of the other company, Monsanto, which is owned by Bayer. If people want farm, ag, there's only a couple companies like that. There's Deere, and there's going to be that. People like the feed the Earth thesis. The last one is very difficult, especially ... It's kind of a hodge-podge.

Jeff Marks: Yeah, it's new DuPont. You know, if you actually look at their 2018 numbers, if you just serperate from new DuPont, they actually had some of the best organic growth and EBITA margin in its class. Very good. Very good there. They're in some really strong markets. Some of the cons that I'm a little more worried about would be auto, and housing.

Jim Cramer: It's funny, 'cause-

Jeff Marks: Auto's about 15% of the company. That's tough.

Jim Cramer: We got a hook in, it's like Illinois Tool Works and 3M in the sense that everyone knew auto was weak and they still went higher.

Jeff Marks: They sell into better markets than ITW. That's what we saw the previous earning season where ITW completely collapsed DowDuPont did better, save for last quarter, which was just a difficult environment everywhere. Because of the interest rate scares. It will be one of the better industrials out there.

Jim Cramer: I think so too.

Jeff Marks: And, they plan I divesting another 10% of the portfolio.

Jim Cramer: Splitting again, splitting again, splitting again.

Jeff Marks: Exactly. That's what 3M needs to do. It's just another avenue for value creation.

Jim Cramer: Yeah, I keep thinking there will come a day when portfolio managers will not want to own Dow because of plastic. You see the paper to plastic, single used plastic being banned today by our mayor here. I know that when I had Jim Fitterling on, the CEO, I asked him ... My daughter's very angry at me. She's sweet as can be, but she does say, Dad you do nothing to help the environment. I watch your show, you don't talk about it. You don't criticize these people. I said, look these guys are trying hard. Jim Fitterling, he doesn't want pollution.

Jim Cramer: She goes, yeah, but the island in the Pacific. I said, it does what [inaudible 00:55:23]. She goes, yeah, but they don't recycle it. Finally, I just said what do want me to ask him. She goes, why don't you ask him how he can live with himself. I did it, and a lot of younger people told me it was good. Older people told me it was disrespectful. I had said a lot of good things about him. Let's get away from the personal.

Jim Cramer: There will come a time when people will say, this is coal, this is tobacco. Not yet. But, you know that we're looking to get out at a certain price.

Jeff Marks: Yeah, I think so. We've been in it, DowDuPont for this entire time for the value creation from the breakup. We saw that, right? We saw DowDuPont do well post-spin, we've seen Dow do well post-spin. We're getting that now. We're going to see it agan when DowDuPont spins off again. But, when that dividend yield isn't as big relative to the rest of the Dow, that will be the point where it's time to go. We have a $62 price target, what's it trading now, 57 and change? If we see it inch closer, it's time to go.

 

DowDuPont Inc. (DWDP)  posted weaker-than-expected first quarter earnings on Thursday, May 1st, in its first full investor report following its spin-off from Dow Inc. (DOW)  earlier this year.

RELATED: How Does the DowDuPont Spinoff Affect Investors

Dow Inc. posted a sharp decline in first-quarter profit in its first update following the spinoff. Dow said earnings for the three months ending in March fell 24.4% from the same period last year to $1.92 billion, in-line with the company's previous guidance. Group sales, however, fell 10% to $10.8 billion and topped the Street consensus forecast of $10.68 billion.

RELATED: What DowDuPont's Reverse Stock Split Means For Investors

During Jim Cramer's members-only Action Alerts Plus monthly call, he was asked to discuss the pros and cons of each DowDuPont entity?

"We've got Dow, which we know is already doing well because of the dividend. It's not at $2.77, that's my estimate." said Cramer.

Jeff Marks, senior portfolio analyst for Action Alerts Plus, said "Probably the biggest pro, income. The dividend yield."

Watch the video for more on what Jim Cramer thinks of the two companies following the spinoff.

Get Answers to Your Most Pressing Market Questions. Plus, get a sneak peak of what Jim Cramer tells his Action Alerts PLUS members about earnings, investment strategies and more. Click here for TheStreet's new video series #AskCramer.

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