Financial Analysis: Cosan Limited (CZZ) & Suburban Propane Partners, L.P. (SPH)
Cosan Limited (NYSE: CZZ) and Suburban Propane Partners, L.P. (NYSE:SPH) are both oil & gas refining and marketing – nec companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.
Risk & Volatility
Cosan Limited has a beta of 2.35, suggesting that its share price is 135% more volatile than the S&P 500. Comparatively, Suburban Propane Partners, L.P. has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.
Institutional and Insider Ownership
42.4% of Cosan Limited shares are owned by institutional investors. Comparatively, 25.3% of Suburban Propane Partners, L.P. shares are owned by institutional investors. 0.6% of Suburban Propane Partners, L.P. 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.
This is a breakdown of recent ratings and recommmendations for Cosan Limited and Suburban Propane Partners, L.P., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Suburban Propane Partners, L.P.||0||1||1||0||2.50|
Suburban Propane Partners, L.P. has a consensus price target of $26.00, indicating a potential upside of 6.82%. Given Suburban Propane Partners, L.P.’s higher probable upside, analysts plainly believe Suburban Propane Partners, L.P. is more favorable than Cosan Limited.
This table compares Cosan Limited and Suburban Propane Partners, L.P.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Suburban Propane Partners, L.P.||2.46%||4.09%||1.25%|
Valuation & Earnings
This table compares Cosan Limited and Suburban Propane Partners, L.P.’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Cosan Limited||$3.59 billion||0.38||$79.64 million||$0.31||26.19|
|Suburban Propane Partners, L.P.||$1.05 billion||1.42||$14.44 million||$0.45||54.09|
Cosan Limited has higher revenue and earnings than Suburban Propane Partners, L.P.. Cosan Limited is trading at a lower price-to-earnings ratio than Suburban Propane Partners, L.P., indicating that it is currently the more affordable of the two stocks.
Cosan Limited pays an annual dividend of $0.08 per share and has a dividend yield of 1.0%. Suburban Propane Partners, L.P. pays an annual dividend of $2.40 per share and has a dividend yield of 9.9%. Cosan Limited pays out 25.8% of its earnings in the form of a dividend. Suburban Propane Partners, L.P. pays out 533.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Suburban Propane Partners, L.P. has raised its dividend for 2 consecutive years. Suburban Propane Partners, L.P. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Suburban Propane Partners, L.P. beats Cosan Limited on 10 of the 15 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).
Suburban Propane Partners, L.P. Company Profile
Suburban Propane Partners, L.P. is a marketer and distributor of a range of products. The Company specializes in the distribution of propane, fuel oil and refined fuels, as well as the marketing of natural gas and electricity in deregulated markets. The Company’s segments include Propane, Fuel Oil and Refined Fuels, Natural Gas and Electricity, and All Other. In support of its marketing and distribution operations, the Company installs and services a range of home comfort equipment, particularly in the areas of heating and ventilation. The Company conducts its business through Suburban Propane, L.P., which operates its propane business and assets (the Operating Partnership), and its direct and indirect subsidiaries. As of September 24, 2016, it had sold approximately 414.8 million gallons of propane and 30.9 million gallons of fuel oil and refined fuels to retail customers. The Company owns and operates a propane storage facility in Elk Grove, California.
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