Cosan (NYSE:CSAN) and HF Sinclair (NYSE:DINO) Critical Analysis

HF Sinclair (NYSE:DINO) and Cosan (NYSE:CSAN) are both mid-cap energy companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Institutional & Insider Ownership

88.3% of HF Sinclair shares are owned by institutional investors. 0.3% of HF Sinclair shares are owned by 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for HF Sinclair and Cosan, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HF Sinclair	0	6	7	0	2.54
Cosan	0	1	0	0	2.00

HF Sinclair currently has a consensus target price of $55.82, indicating a potential upside of 26.09%. Given HF Sinclair’s stronger consensus rating and higher probable upside, research analysts clearly believe HF Sinclair is more favorable than Cosan.

Risk & Volatility

HF Sinclair has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Cosan has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500.

Profitability

This table compares HF Sinclair and Cosan’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HF Sinclair	3.80%	11.85%	6.77%
Cosan	N/A	N/A	N/A

Dividends

HF Sinclair pays an annual dividend of $2.00 per share and has a dividend yield of 4.5%. Cosan pays an annual dividend of $0.31 per share and has a dividend yield of 3.7%. HF Sinclair pays out 24.8% of its earnings in the form of a dividend. Cosan pays out 19.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Valuation and Earnings

This table compares HF Sinclair and Cosan”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HF Sinclair	$31.44 billion	0.27	$1.59 billion	$8.08	5.48
Cosan	$40.34 billion	0.10	$1.13 billion	$1.58	5.24

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

Summary

HF Sinclair beats Cosan on 13 of the 16 factors compared between the two stocks.

About HF Sinclair

HF Sinclair Corporation operates as an independent energy company. The company produces and markets gasoline, diesel fuel, jet fuel, renewable diesel, specialty lubricant products, specialty chemicals, specialty and modified asphalt, and others. It owns and operates refineries located in Kansas, Oklahoma, New Mexico, Utah, Washington, and Wyoming; and markets its refined products principally in the Southwest United States and Rocky Mountains, Pacific Northwest, and in other neighboring Plains states. In addition, the company supplies fuels to approximately 1,500 independent Sinclair branded stations and licenses the use of the Sinclair brand at approximately 300 additional locations. Further, it produces base oils and other specialized lubricants; and provides petroleum product and crude oil transportation, terminalling, storage, and throughput services to the petroleum sector. HF Sinclair Corporation is headquartered in Dallas, Texas.

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.