Head to Head Review: Exxon Mobil Corporation (XOM) & Cosan Limited (CZZ)

Exxon Mobil Corporation (NYSE: XOM) and Cosan Limited (NYSE:CZZ) are both mid-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Exxon Mobil Corporation 4.75% 7.62% 4.04%
Cosan Limited 0.73% -0.15% -0.05%

Insider and Institutional Ownership

50.7% of Exxon Mobil Corporation shares are held by institutional investors. Comparatively, 43.2% of Cosan Limited shares are held by institutional investors. 0.1% of Exxon Mobil Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Exxon Mobil Corporation and Cosan Limited’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Exxon Mobil Corporation $215.29 billion 1.62 $27.62 billion $2.77 29.76
Cosan Limited $3.84 billion 0.60 $1.23 billion N/A N/A

Exxon Mobil Corporation has higher revenue and earnings than Cosan Limited.

Volatility & Risk

Exxon Mobil Corporation has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Cosan Limited has a beta of 2.27, indicating that its stock price is 127% more volatile than the S&P 500.

Dividends

Exxon Mobil Corporation pays an annual dividend of $3.08 per share and has a dividend yield of 3.7%. Cosan Limited pays an annual dividend of $0.08 per share and has a dividend yield of 0.9%. Exxon Mobil Corporation pays out 111.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Exxon Mobil Corporation has raised its dividend for 34 consecutive years. Exxon Mobil Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Exxon Mobil Corporation 6 13 8 1 2.14
Cosan Limited 0 1 1 0 2.50

Exxon Mobil Corporation currently has a consensus price target of $85.20, suggesting a potential upside of 3.37%. Given Exxon Mobil Corporation’s higher probable upside, equities research analysts plainly believe Exxon Mobil Corporation is more favorable than Cosan Limited.

Summary

Exxon Mobil Corporation beats Cosan Limited on 13 of the 17 factors compared between the two stocks.

About Exxon Mobil Corporation

Exxon Mobil Corporation is engaged in energy business. The Company is engaged in the exploration, production, transportation and sale of crude oil and natural gas, and the manufacture, transportation and sale of petroleum products. The Company also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and a range of specialty products. The Company’s segments include Upstream, Downstream, Chemical, and Corporate and Financing. The Upstream segment operates to explore for and produce crude oil and natural gas. The Downstream operates to manufacture and sell petroleum products. The Chemical segment operates to manufacture and sell petrochemicals. The Company has exploration and development activities in projects located in the United States, Canada/South America, Europe, Africa, Asia and Australia/Oceania.

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).

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