Analyzing Cosan Limited (CZZ) and Exxon Mobil Corporation (XOM)
Cosan Limited (NYSE: CZZ) and Exxon Mobil Corporation (NYSE:XOM) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.
Cosan Limited pays an annual dividend of $0.08 per share and has a dividend yield of 0.9%. Exxon Mobil Corporation pays an annual dividend of $3.08 per share and has a dividend yield of 3.8%. Exxon Mobil Corporation pays out 111.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cosan Limited has raised its dividend for 34 consecutive years.
Institutional & Insider Ownership
43.2% of Cosan Limited shares are owned by institutional investors. Comparatively, 50.7% of Exxon Mobil Corporation shares are owned by institutional investors. 0.1% of Exxon Mobil Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Cosan Limited and Exxon Mobil Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Exxon Mobil Corporation||4.75%||7.62%||4.04%|
This is a summary of current ratings and recommmendations for Cosan Limited and Exxon Mobil Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Exxon Mobil Corporation||7||13||8||1||2.10|
Exxon Mobil Corporation has a consensus price target of $85.11, indicating a potential upside of 4.06%. Given Exxon Mobil Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Exxon Mobil Corporation is more favorable than Cosan Limited.
Risk & Volatility
Cosan Limited has a beta of 2.27, indicating that its stock price is 127% more volatile than the S&P 500. Comparatively, Exxon Mobil Corporation has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.
Valuation and Earnings
This table compares Cosan Limited and Exxon Mobil Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cosan Limited||$3.84 billion||0.61||$1.23 billion||N/A||N/A|
|Exxon Mobil Corporation||$215.29 billion||1.61||$27.62 billion||$2.77||29.53|
Exxon Mobil Corporation has higher revenue and earnings than Cosan Limited.
Exxon Mobil Corporation beats Cosan Limited on 14 of the 17 factors compared between the two stocks.
Cosan Limited 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).
Exxon Mobil Corporation Company Profile
Exxon Mobil Corporation is engaged in energy business. The Company is engaged in the exploration, production, transportation and sale of crude oil and natural gas, and the manufacture, transportation and sale of petroleum products. The Company also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and a range of specialty products. The Company’s segments include Upstream, Downstream, Chemical, and Corporate and Financing. The Upstream segment operates to explore for and produce crude oil and natural gas. The Downstream operates to manufacture and sell petroleum products. The Chemical segment operates to manufacture and sell petrochemicals. The Company has exploration and development activities in projects located in the United States, Canada/South America, Europe, Africa, Asia and Australia/Oceania.
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