Cosan (NYSE:CZZ) and Genco Shipping & Trading (NASDAQ:FREE) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Earnings & Valuation

This table compares Cosan and Genco Shipping & Trading’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cosan $5.01 billion 0.84 $333.56 million $1.34 12.82
Genco Shipping & Trading N/A N/A N/A N/A N/A

Cosan has higher revenue and earnings than Genco Shipping & Trading.

Analyst Recommendations

This is a summary of current ratings and target prices for Cosan and Genco Shipping & Trading, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cosan 0 3 1 0 2.25
Genco Shipping & Trading 0 0 0 0 N/A

Cosan currently has a consensus target price of $16.68, suggesting a potential downside of 2.94%. Given Cosan’s higher probable upside, equities research analysts plainly believe Cosan is more favorable than Genco Shipping & Trading.

Risk and Volatility

Cosan has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Genco Shipping & Trading has a beta of 0.17, meaning that its stock price is 83% less volatile than the S&P 500.

Profitability

This table compares Cosan and Genco Shipping & Trading’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cosan 8.65% 13.56% 3.19%
Genco Shipping & Trading N/A N/A N/A

Institutional & Insider Ownership

21.0% of Cosan shares are owned by institutional investors. Comparatively, 51.8% of Genco Shipping & Trading shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Cosan beats Genco Shipping & Trading on 7 of the 8 factors compared between the two stocks.

Cosan Company Profile

Cosan Limited, together with its subsidiaries, engages in fuel and natural gas distribution, logistics, lubricant, sugar and ethanol businesses primarily in Brazil and internationally. The company's Raízen Energia produces and markets products derived from sugar cane, including raw sugar, anhydrous, and hydrated ethanol, as well as activities related to energy cogeneration from sugarcane bagasse. Its Raízen Combustíveis segment distributes and markets fuels, primarily through a franchised network of service stations under the Shell brand in Brazil. The company's COMGÁS segment distributes piped natural gas to customers in the industrial, residential, commercial, automotive, thermo-generation and cogeneration sectors in Sao Paulo. Its Cosan Logística segment provides logistics services for transport, storage, and port loading of commodities, primarily for sugar products; and leases locomotives, wagons, and other railway equipment. The company's Lubricants segment produces and distributes lubricants under the Mobil and Comma brands. It operates a network of approximately 6,272 service stations and 950 convenience stores, as well as 68 distribution terminals and 68 airports supplying jet fuel. The company was incorporated in 2007 and is based in São Paulo, Brazil.

Genco Shipping & Trading Company Profile

Whole Earth Brands, Inc. operates as a global platform of branded products and ingredients focusing on the consumer transition towards natural alternatives, plant-based, clean label, and non-sugar products. The company offers various licorice products from licorice root, intermediary licorice extracts, and crude derivatives for the tobacco industry as tobacco flavor enhancing and moistening agents; and food and beverage processors, confectioners, cosmetic companies, and pharmaceutical manufacturers for use as flavoring or masking agents, as well as sells licorice root residue as garden mulch under the name Right Dress. It also manufactures, markets, and distributes tabletop sweeteners for the consumer food markets primarily under the Equal, Canderel, Pure Via, and Whole Earth Sweetener brands through the food retail, mass merchandising, pharmacy, and food service channels. The company is based in Chicago, Illinois.

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