Financial Analysis: Greenfire Resources (NYSE:GFR) & Cosan (NYSE:CSAN)

Greenfire Resources (NYSE:GFR) and Cosan (NYSE:CSAN) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.

Volatility & Risk

Greenfire Resources has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500. Comparatively, Cosan has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Insider and Institutional Ownership

88.9% of Greenfire Resources shares are owned by institutional investors. 20.0% of Greenfire Resources shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Greenfire Resources and Cosan, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Greenfire Resources	1	1	0	0	1.50
Cosan	2	2	1	1	2.17

Cosan has a consensus price target of $9.47, indicating a potential upside of 108.33%. Given Cosan’s stronger consensus rating and higher probable upside, analysts plainly believe Cosan is more favorable than Greenfire Resources.

Profitability

This table compares Greenfire Resources and Cosan’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Greenfire Resources	28.61%	24.62%	16.27%
Cosan	-28.08%	-27.61%	-8.25%

Valuation & Earnings

This table compares Greenfire Resources and Cosan”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Greenfire Resources	$730.72 million	0.45	$88.61 million	$2.04	2.32
Cosan	$8.15 billion	0.26	-$1.75 billion	$1.32	3.44

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

Summary

Greenfire Resources beats Cosan on 8 of the 15 factors compared between the two stocks.

About Greenfire Resources

Greenfire Resources Ltd., together with its subsidiaries, engages in the development, exploration, and operation of oil and gas properties in the Athabasca oil sands region of Alberta. The company operates the Tier-1 oil sands assets located in Western Canada. It utilizes steam-assisted gravity drainage (SAGD) extraction technology, a situ thermal oil recovery process to recover diluted and non- diluted bitumen. The company 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.