Financial Comparison: Exxon Mobil Corporation (XOM) & Cosan Limited (CZZ)
Exxon Mobil Corporation (NYSE: XOM) and Cosan Limited (NYSE:CZZ) are both mid-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.
Risk & Volatility
Exxon Mobil Corporation has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Cosan Limited has a beta of 2.27, suggesting that its stock price is 127% more volatile than the S&P 500.
Insider and Institutional Ownership
50.7% of Exxon Mobil Corporation shares are held by institutional investors. Comparatively, 43.2% of Cosan Limited shares are held by institutional investors. 0.1% of Exxon Mobil Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Exxon Mobil Corporation and Cosan Limited’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Exxon Mobil Corporation||$215.29 billion||1.62||$27.62 billion||$2.77||29.75|
|Cosan Limited||$3.84 billion||0.62||$1.23 billion||N/A||N/A|
Exxon Mobil Corporation has higher revenue and earnings than Cosan Limited.
Exxon Mobil Corporation pays an annual dividend of $3.08 per share and has a dividend yield of 3.7%. Cosan Limited pays an annual dividend of $0.08 per share and has a dividend yield of 0.9%. 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. Exxon Mobil Corporation has raised its dividend for 34 consecutive years. Exxon Mobil Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Exxon Mobil Corporation and Cosan Limited’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 recent ratings and recommmendations for Exxon Mobil Corporation and Cosan Limited, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Exxon Mobil Corporation||6||13||8||1||2.14|
Exxon Mobil Corporation presently has a consensus target price of $85.34, suggesting a potential upside of 3.56%. Given Exxon Mobil Corporation’s higher probable upside, equities analysts clearly believe Exxon Mobil Corporation is more favorable than Cosan Limited.
Exxon Mobil Corporation beats Cosan Limited on 13 of the 17 factors compared between the two stocks.
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.
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).
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