Analyzing Cosan (NYSE:CSAN) & Baytex Energy (OTCMKTS:BTEGF)

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

Volatility and Risk

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Baytex Energy	$2.79 billion	0.90	$1.29 billion	$1.47	3.12
Cosan	$7.24 billion	0.37	-$1.74 billion	($2.16)	-1.24

Baytex Energy has higher earnings, but lower revenue 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.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Baytex Energy and Cosan, as provided by MarketBeat.

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

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

Profitability

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

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

Summary

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

About Baytex Energy

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.

About Cosan

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.