Critical Contrast: Cosan (NYSE:CSAN) and Baytex Energy (OTCMKTS:BTEGF)

Cosan (NYSE:CSAN – Get Free Report) and Baytex Energy (OTCMKTS:BTEGF – Get Free Report) are both mid-cap energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.

Profitability

This table compares Cosan and Baytex Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cosan -21.83% -12.58% -3.00%
Baytex Energy 38.28% 40.85% 20.18%

Analyst Ratings

This is a summary of recent recommendations for Cosan and Baytex Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cosan 2 4 0 0 1.67
Baytex Energy 0 2 1 0 2.33

Cosan currently has a consensus price target of $3.85, suggesting a potential upside of 43.39%. Given Cosan’s higher probable upside, equities research analysts plainly believe Cosan is more favorable than Baytex Energy.

Valuation & Earnings

This table compares Cosan and Baytex Energy”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cosan $7.24 billion 0.37 -$1.74 billion ($2.16) -1.24
Baytex Energy $2.79 billion 0.88 $1.29 billion $1.47 3.08

Baytex Energy has lower revenue, but higher earnings than Cosan. Cosan is trading at a lower price-to-earnings ratio than Baytex Energy, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Cosan has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Baytex Energy has a beta of 2.16, meaning that its share price is 116% more volatile than the S&P 500.

Summary

Baytex Energy beats Cosan on 10 of the 12 factors compared between the two stocks.

About Cosan

(Get Free Report)

Cosan S.A. engages in the fuel distribution business. It operates through Raízen, Compass, Moove, Rumo, and Radar segments. The company’s Raízen segment engages in the production, commercialization, origination, and trading of ethanol, bioenergy, renewable sources, and sugar; trading and resale of electricity; and distribution and commercialization of fuels and lubricants. Its Compass segment distributes piped natural gas to industrial, residential, commercial, automotive, and cogeneration customers; and develops infrastructure projects in a regasification terminal, offshore gas pipeline, and thermal generation projects utilizing natural gas, as well as commercialization of electricity and natural gas. The company’s Moove segment produces and distributes lubricants under the Comma brand. Its Rumo segment provides logistics services for rail transportation, port storage, and loading of goods, including grains and sugar; and leases locomotives, wagons, and another railroad equipment, as well as operates containers. The company’s Radar segment manages agricultural property. It operates in Brazil, England, France, Spain and Portugal, Argentina, Bolivia, Uruguay and Paraguay, the United States, Asia, and internationally. Cosan S.A. was founded in 1936 and is headquartered in São Paulo, Brazil.

About Baytex Energy

(Get Free Report)

Baytex Energy Corp. operates as an oil & gas exploration and production company. It engages in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. The company was founded in 1993 and is headquartered in Calgary, Canada.

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