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

Analyst Ratings

This is a summary of current ratings for Cosan Limited and BP p.l.c., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cosan Limited 0 1 0 0 2.00
BP p.l.c. 3 5 13 0 2.48

BP p.l.c. has a consensus target price of $36.58, indicating a potential upside of 4.65%. Given BP p.l.c.’s stronger consensus rating and higher possible upside, analysts clearly believe BP p.l.c. is more favorable than Cosan Limited.

Insider and Institutional Ownership

43.3% of Cosan Limited shares are owned by institutional investors. Comparatively, 10.1% of BP p.l.c. shares are owned by institutional investors. 1.0% of BP p.l.c. shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Cosan Limited pays an annual dividend of $0.08 per share and has a dividend yield of 1.0%. BP p.l.c. pays an annual dividend of $2.38 per share and has a dividend yield of 6.8%. BP p.l.c. pays out 207.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Cosan Limited and BP p.l.c.’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%
BP p.l.c. 1.74% 3.64% 1.34%

Risk and Volatility

Cosan Limited has a beta of 2.31, suggesting that its stock price is 131% more volatile than the S&P 500. Comparatively, BP p.l.c. has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Earnings and Valuation

This table compares Cosan Limited and BP p.l.c.’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 0.56 $1.23 billion N/A N/A
BP p.l.c. $209.85 billion 0.55 $19.97 billion $1.15 30.39

BP p.l.c. has higher revenue and earnings than Cosan Limited.

Summary

BP p.l.c. beats Cosan Limited on 10 of the 15 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 BP p.l.c.

BP p.l.c. is an integrated oil and gas company. The Company owns an interest in OJSC Oil Company Rosneft (Rosneft), an oil and gas company. The Company’s segments include Upstream, Downstream, Rosneft, and Other businesses and corporate. The Upstream segment is engaged in oil and natural gas exploration, field development and production, as well as midstream transportation, storage and processing. The Downstream segment has global manufacturing and marketing operations. The Rosneft segment has a resource base of hydrocarbons onshore and offshore. The Other businesses and corporate segment comprises the biofuels and wind businesses, shipping and treasury functions, and corporate activities around the world. The Company provides its customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging.

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