Head to Head Analysis: Suburban Propane Partners (SPH) & Cosan (NYSE:CZZ)

Cosan (NYSE: CZZ) and Suburban Propane Partners (NYSE:SPH) are both small-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.

Insider & Institutional Ownership

41.9% of Cosan shares are held by institutional investors. Comparatively, 26.0% of Suburban Propane Partners shares are held by institutional investors. 0.6% of Suburban Propane Partners shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Cosan has a beta of 2.36, suggesting that its share price is 136% more volatile than the S&P 500. Comparatively, Suburban Propane Partners has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Cosan and Suburban Propane Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cosan 0 1 1 0 2.50
Suburban Propane Partners 0 1 1 0 2.50

Suburban Propane Partners has a consensus target price of $26.00, indicating a potential upside of 8.38%. Given Suburban Propane Partners’ higher possible upside, analysts clearly believe Suburban Propane Partners is more favorable than Cosan.

Valuation & Earnings

This table compares Cosan and Suburban Propane Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cosan $3.59 billion 0.44 $79.64 million N/A N/A
Suburban Propane Partners $1.19 billion 1.24 $37.99 million $0.61 39.33

Cosan has higher revenue and earnings than Suburban Propane Partners.

Dividends

Cosan pays an annual dividend of $0.08 per share and has a dividend yield of 0.9%. Suburban Propane Partners pays an annual dividend of $2.40 per share and has a dividend yield of 10.0%. Suburban Propane Partners pays out 393.4% 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 has increased its dividend for 2 consecutive years. Suburban Propane Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Cosan and Suburban Propane Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cosan 1.65% 0.72% 0.22%
Suburban Propane Partners 3.20% 5.81% 1.70%

Summary

Suburban Propane Partners beats Cosan on 9 of the 14 factors compared between the two stocks.

Cosan 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 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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