Financial Analysis: Enlink Midstream (XTXI) and Cosan (CZZ)

Enlink Midstream (NASDAQ: XTXI) and Cosan (NYSE:CZZ) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Enlink Midstream and Cosan, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enlink Midstream 0 0 0 0 N/A
Cosan 0 1 1 0 2.50

Valuation & Earnings

This table compares Enlink Midstream 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
Enlink Midstream N/A N/A N/A ($0.52) -72.31
Cosan $3.59 billion 0.45 $79.64 million $0.30 31.73

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

Profitability

This table compares Enlink Midstream and Cosan’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enlink Midstream N/A N/A N/A
Cosan 1.65% 0.72% 0.22%

Insider and Institutional Ownership

41.9% of Cosan shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Cosan pays an annual dividend of $0.08 per share and has a dividend yield of 0.8%. Enlink Midstream does not pay a dividend. Cosan pays out 26.7% of its earnings in the form of a dividend.

Summary

Cosan beats Enlink Midstream on 8 of the 9 factors compared between the two stocks.

Enlink Midstream Company Profile

Enlink Midstream Partners, L.P. is engaged, through its subsidiaries, in the gathering, transmission, processing and marketing of natural gas and natural gas liquids (NGLs). The Company connects the wells of natural gas producers in the geographic areas of its gathering systems in order to gather for a fee or purchase the gas production, processes natural gas for the removal of NGLs, transports natural gas and NGLs and ultimately provides natural gas and NGLs to a variety of markets. In addition, it purchases natural gas and NGLs from producers not connected to its gathering systems for resale and markets natural gas and NGLs on behalf of producers for a fee. Its partnership interests consist of 19.7% limited partner interest in Crosstex Energy, L.P. (the Partnership), as of December 31, 2012, and 100% ownership interest in Crosstex Energy GP, LLC, the general partner of the Partnership, which owns a 2.0% general partner interest and all of the distribution rights in the Partnership.

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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