Contrasting Cosan (CZZ) and Its Peers

Cosan (NYSE: CZZ) is one of 38 publicly-traded companies in the “Oil & Gas Refining and Marketing” industry, but how does it compare to its peers? We will compare Cosan to related companies based on the strength of its dividends, profitability, institutional ownership, earnings, analyst recommendations, risk and valuation.

Dividends

Cosan pays an annual dividend of $0.08 per share and has a dividend yield of 0.9%. As a group, “Oil & Gas Refining and Marketing” companies pay a dividend yield of 5.4% and pay out 384.2% of their earnings in the form of a dividend.

Volatility & Risk

Cosan has a beta of 2.36, indicating that its share price is 136% more volatile than the S&P 500. Comparatively, Cosan’s peers have a beta of 1.31, indicating that their average share price is 31% more volatile than the S&P 500.

Institutional and Insider Ownership

41.9% of Cosan shares are held by institutional investors. Comparatively, 48.1% of shares of all “Oil & Gas Refining and Marketing” companies are held by institutional investors. 11.7% of shares of all “Oil & Gas Refining and Marketing” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Cosan and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cosan $3.59 billion $79.64 million N/A
Cosan Competitors $40.29 billion $686.61 million 238.83

Cosan’s peers have higher revenue and earnings than Cosan.

Analyst Recommendations

This is a summary of recent ratings for Cosan and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cosan 0 1 1 0 2.50
Cosan Competitors 389 1889 2510 117 2.48

As a group, “Oil & Gas Refining and Marketing” companies have a potential upside of 10.86%. Given Cosan’s peers higher possible upside, analysts clearly believe Cosan has less favorable growth aspects than its peers.

Profitability

This table compares Cosan and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cosan 1.65% 0.72% 0.22%
Cosan Competitors -1.29% 3.43% 1.68%

Summary

Cosan peers beat Cosan on 11 of the 15 factors compared.

Cosan Company Profile

Cosan Limited (Cosan) is a holding company. The Company’s segments include Raizen Energia, Raizen Combustiveis, COMGAS, Cosan Logistica, Lubricants and Other business. The Company’s other business include other investments, in addition to the corporate activities. The Company offers Logistics services, including transportation, port loading and storage of sugar, leasing or lending of locomotives, wagons and other railway equipment, through its subsidiaries Rumo Logistica Operadora Multimodal S.A. (Rumo), logistic segment (Logistic). The Company is also engaged in production and distribution of lubricants, through its indirect subsidiaries Cosan Lubrificantes e Especialidades S.A. (Moove) and Comma Oil & Chemicals Ltd. (Comma), under the Mobil licensed trademark in Brazil, Bolivia, Uruguay and Paraguay, in addition to the European and Asian market using the Comma brand and corporate activities (Lubricants).

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