Tootsie Roll Industries (NYSE: TR) and Cosan (NYSE:CZZ) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.
Earnings & Valuation
This table compares Tootsie Roll Industries and Cosan’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Tootsie Roll Industries||$515.67 million||3.60||$80.86 million||N/A||N/A|
|Cosan||$4.26 billion||0.55||$172.57 million||$0.64||15.13|
Volatility & Risk
Tootsie Roll Industries has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Cosan has a beta of 2.35, indicating that its share price is 135% more volatile than the S&P 500.
Institutional & Insider Ownership
21.3% of Tootsie Roll Industries shares are held by institutional investors. Comparatively, 25.4% of Cosan shares are held by institutional investors. 65.5% of Tootsie Roll Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a breakdown of current ratings and price targets for Tootsie Roll Industries and Cosan, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tootsie Roll Industries||0||0||0||0||N/A|
Cosan has a consensus target price of $13.00, suggesting a potential upside of 34.30%. Given Cosan’s higher probable upside, analysts clearly believe Cosan is more favorable than Tootsie Roll Industries.
Tootsie Roll Industries pays an annual dividend of $0.36 per share and has a dividend yield of 1.3%. Cosan pays an annual dividend of $0.08 per share and has a dividend yield of 0.8%. Cosan pays out 12.5% of its earnings in the form of a dividend. Tootsie Roll Industries has raised its dividend for 52 consecutive years. Tootsie Roll Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Tootsie Roll Industries and Cosan’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tootsie Roll Industries||15.38%||10.97%||8.52%|
Tootsie Roll Industries beats Cosan on 9 of the 15 factors compared between the two stocks.
About Tootsie Roll Industries
Tootsie Roll Industries, Inc., together with its subsidiaries, manufactures and sells confectionery products primarily in the United States, Canada, and Mexico. The company sells its products under the TOOTSIE ROLL, TOOTSIE POPS, CHILD'S PLAY, CARAMEL APPLE POPS, CHARMS, BLOW-POP, CHARMS MINI POPS, CELLA'S, DOTS, JUNIOR MINTS, CHARLESTON CHEW, SUGAR DADDY, SUGAR BABIES, ANDES, FLUFFY STUFF, DUBBLE BUBBLE, RAZZLES, CRY BABY, NIK-L-NIP, and TUTSI POP trademarks. Tootsie Roll Industries, Inc. sells its products directly to wholesale distributors of candy and groceries, supermarkets, variety stores, dollar stores, chain grocers, drug chains, discount chains, cooperative grocery associations, mass merchandisers, warehouse and membership club stores, vending machine operators, the United States military, and fund-raising charitable organizations, as well as through candy and grocery brokers. The company was founded in 1896 and is based in Chicago, Illinois.
Cosan Limited, together with its subsidiaries, engages in fuel and natural gas distribution, logistics, lubricant, sugar and ethanol, and fuel businesses primarily in Brazil and internationally. The company's Raízen Energia segment produces and markets various products derived from sugar cane, including raw sugar, and anhydrous and hydrated ethanol. This segment is also involved in activities related to energy cogeneration from sugarcane bagasse; and holds interests in companies involved in research and development on new technology. Its Raízen Combustíveis segment distributes and markets fuels, primarily through a franchised network of service stations under the Shell brand in Brazil. The company's COMGÁS segment distributes piped natural gas to customers in the industrial, residential, commercial, automotive, thermogeneration, and cogeneration sectors in part of the State of Sao Paulo. Its Cosan Logística segment provides logistics services for transport, storage, and port loading of commodities, primarily for sugar products; and leasing or lending of locomotives, wagons, and other railway equipment. The company's Lubricants segment produces and distributes lubricants under the Mobil brand and Comma name. Cosan Limited operates a network of approximately 6,000 Shell service stations and 960 convenience stores, as well as 67 distribution terminals and 64 airport terminals. The company was incorporated in 2007 and is based in São Paulo, Brazil.
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