Monsanto (NYSE: MON) and Cosan (NYSE:CZZ) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
This table compares Monsanto and Cosan’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Monsanto pays an annual dividend of $2.16 per share and has a dividend yield of 1.8%. Cosan pays an annual dividend of $0.08 per share and has a dividend yield of 0.7%. Monsanto pays out 39.9% of its earnings in the form of a dividend.
Volatility and Risk
Monsanto has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Cosan has a beta of 2.31, suggesting that its share price is 131% more volatile than the S&P 500.
Valuation and Earnings
This table compares Monsanto and Cosan’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Monsanto||$14.64 billion||3.53||$2.26 billion||$5.42||21.61|
|Cosan||$4.25 billion||0.67||$172.57 million||N/A||N/A|
Monsanto has higher revenue and earnings than Cosan.
This is a breakdown of recent ratings and price targets for Monsanto and Cosan, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Monsanto currently has a consensus price target of $127.25, indicating a potential upside of 8.62%. Cosan has a consensus price target of $13.00, indicating a potential upside of 20.82%. Given Cosan’s stronger consensus rating and higher possible upside, analysts clearly believe Cosan is more favorable than Monsanto.
Insider and Institutional Ownership
76.2% of Monsanto shares are held by institutional investors. Comparatively, 23.5% of Cosan shares are held by institutional investors. 0.8% of Monsanto shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Monsanto beats Cosan on 10 of the 14 factors compared between the two stocks.
Monsanto Company Profile
Monsanto Company (Monsanto), along with its subsidiaries, is a provider of agricultural products for farmers. The Company provides seeds, biotechnology trait products, herbicides and digital agriculture tools to farmers. The Company operates through two segments: Seeds and Genomics, and Agricultural Productivity. Through its Seeds and Genomics segment, the Company produces seed brands, including DEKALB, Asgrow, Deltapine, Seminis and De Ruiter, and it develops biotechnology traits that assist farmers in controlling insects and weeds and digital agriculture to assist farmers in decision-making. The Seeds and Genomics segment offers products, such as Germplasm and Biotechnology traits. Through its Agricultural Productivity segment, the Company manufactures Roundup brand herbicides and other herbicides and provides lawn-and-garden herbicide products for the residential market.
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).
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