Cosan Limited (NYSE: CZZ) and Marathon Petroleum Corporation (NYSE:MPC) are both mid-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Earnings & Valuation

This table compares Cosan Limited and Marathon Petroleum Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cosan Limited $3.84 billion 0.55 $1.23 billion N/A N/A
Marathon Petroleum Corporation $60.96 billion 0.44 $4.41 billion $1.76 30.35

Marathon Petroleum Corporation has higher revenue and earnings than Cosan Limited.

Profitability

This table compares Cosan Limited and Marathon Petroleum Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cosan Limited 0.73% -0.15% -0.05%
Marathon Petroleum Corporation 1.34% 5.52% 2.45%

Risk & Volatility

Cosan Limited has a beta of 2.31, meaning that its stock price is 131% more volatile than the S&P 500. Comparatively, Marathon Petroleum Corporation has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500.

Dividends

Cosan Limited pays an annual dividend of $0.08 per share and has a dividend yield of 1.0%. Marathon Petroleum Corporation pays an annual dividend of $1.60 per share and has a dividend yield of 3.0%. Marathon Petroleum Corporation pays out 90.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Marathon Petroleum Corporation has increased its dividend for 6 consecutive years. Marathon Petroleum Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent recommendations for Cosan Limited and Marathon Petroleum Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cosan Limited 0 1 0 0 2.00
Marathon Petroleum Corporation 0 4 10 1 2.80

Marathon Petroleum Corporation has a consensus target price of $59.43, suggesting a potential upside of 11.25%. Given Marathon Petroleum Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Marathon Petroleum Corporation is more favorable than Cosan Limited.

Insider and Institutional Ownership

43.3% of Cosan Limited shares are owned by institutional investors. Comparatively, 78.9% of Marathon Petroleum Corporation shares are owned by institutional investors. 1.1% of Marathon Petroleum Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Marathon Petroleum Corporation beats Cosan Limited on 13 of the 17 factors compared between the two stocks.

About Cosan Limited

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).

About Marathon Petroleum Corporation

Marathon Petroleum Corporation is engaged in refining, marketing, retail and transportation businesses in the United States and the largest east of the Mississippi. The Company operates through three segments: Refining & Marketing; Speedway; and Midstream. The Refining & Marketing segment refines crude oil and other feedstocks at the Company’s seven refineries in the Gulf Coast and Midwest regions of the United States. Its Speedway segment sells transportation fuels and convenience products in the retail market in the Midwest, East Coast and Southeast regions of the United States. The Company’s Midstream is engaged in the operations of MPLX LP and certain other related operations. It gathers, processes and transports natural gas, natural gas liquids (NGLs), crude oil and refined products. MPLX is a limited partnership which owns, operates, develops and acquires midstream energy infrastructure assets.

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