Suncor Energy (NYSE: SU) and Cosan Limited (NYSE:CZZ) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.

Profitability

This table compares Suncor Energy and Cosan Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Suncor Energy 8.85% 4.52% 2.29%
Cosan Limited 0.73% -0.15% -0.05%

Institutional and Insider Ownership

65.6% of Suncor Energy shares are owned by institutional investors. Comparatively, 43.4% of Cosan Limited shares are owned by institutional investors. 1.0% of Suncor Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Suncor Energy has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Cosan Limited has a beta of 2.35, suggesting that its share price is 135% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Suncor Energy and Cosan Limited, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Suncor Energy 0 3 14 1 2.89
Cosan Limited 0 1 0 0 2.00

Suncor Energy currently has a consensus target price of $42.86, indicating a potential upside of 32.23%. Given Suncor Energy ‘s stronger consensus rating and higher possible upside, equities analysts plainly believe Suncor Energy is more favorable than Cosan Limited.

Dividends

Suncor Energy pays an annual dividend of $0.95 per share and has a dividend yield of 2.9%. Cosan Limited pays an annual dividend of $0.08 per share and has a dividend yield of 1.1%. Suncor Energy pays out 77.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares Suncor Energy and Cosan Limited’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Suncor Energy $24.16 billion 2.23 $7.35 billion $1.22 26.57
Cosan Limited $3.90 billion 0.48 $1.27 billion N/A N/A

Suncor Energy has higher revenue and earnings than Cosan Limited.

Summary

Suncor Energy beats Cosan Limited on 14 of the 16 factors compared between the two stocks.

Suncor Energy Company Profile

Suncor Energy Inc. (Suncor) is an integrated energy company. The Company is focused on developing Canada’s petroleum resource basin, Athabasca oil sands. The Company operates in three business segments: Oil Sands, Exploration and Production (E&P), and Refining and Marketing. The Company’s Oil Sands segment includes Oil Sands operations and Oil Sands ventures operations. Its E&P segment consists of offshore operations off the east coast of Canada and in the North Sea, and onshore assets in North America, Libya and Syria. The Company’s Refining and Marketing segment is engaged in Refining and Supply, and Marketing operations. In addition, it explores for, acquires, develops, produces and markets crude oil and natural gas in Canada and internationally. It transports and refines crude oil, and markets petroleum and petrochemical products primarily in Canada. It markets third-party petroleum products. Suncor also conducts energy trading activities.

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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