Critical Analysis: Alvopetro Energy (OTCMKTS:ALVOF) vs. Cosan (NYSE:CSAN)

Cosan (NYSE:CSANGet Free Report) and Alvopetro Energy (OTCMKTS:ALVOFGet Free Report) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Volatility & Risk

Cosan has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Alvopetro Energy has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Cosan and Alvopetro Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cosan 1 4 1 0 2.00
Alvopetro Energy 0 0 0 0 0.00

Cosan currently has a consensus target price of $9.50, suggesting a potential upside of 104.96%. Given Cosan’s stronger consensus rating and higher probable upside, equities analysts clearly believe Cosan is more favorable than Alvopetro Energy.

Valuation & Earnings

This table compares Cosan and Alvopetro Energy”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cosan $8.15 billion 0.27 -$1.75 billion ($1.48) -3.13
Alvopetro Energy $45.52 million 3.58 $16.30 million $0.52 8.54

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

Profitability

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

Net Margins Return on Equity Return on Assets
Cosan -32.24% -36.85% -9.86%
Alvopetro Energy 37.69% 22.24% 17.66%

Summary

Alvopetro Energy beats Cosan on 7 of the 12 factors compared between the two stocks.

About Cosan

(Get Free Report)

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.

About Alvopetro Energy

(Get Free Report)

Alvopetro Energy Ltd. operates as an independent upstream and midstream operator. It engages in the acquisition, exploration, development, and production of hydrocarbons. The company holds interests in the Caburé and Murucututu natural gas assets, Block 182 and 183 exploration assets, and Bom Lugar and Mãe-da-lua oil fields, which covers an area of approximately 22,166 acres in the Recôncavo basin onshore Brazil. Alvopetro Energy Ltd. was incorporated in 2013 and is headquartered in Calgary, Canada.

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