Cosan (NYSE:CSAN) vs. Diversified Energy (NYSE:DEC) Head to Head Review

Diversified Energy (NYSE:DEC) and Cosan (NYSE:CSAN) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Diversified Energy	N/A	N/A	N/A
Cosan	-25.77%	-24.39%	-7.53%

Dividends

Diversified Energy pays an annual dividend of $0.81 per share and has a dividend yield of 5.6%. Cosan pays an annual dividend of $0.31 per share and has a dividend yield of 5.9%. Cosan pays out 23.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings for Diversified Energy and Cosan, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversified Energy	0	0	4	0	3.00
Cosan	0	0	1	1	3.50

Diversified Energy presently has a consensus target price of $20.75, suggesting a potential upside of 43.90%. Cosan has a consensus target price of $19.00, suggesting a potential upside of 264.61%. Given Cosan’s stronger consensus rating and higher probable upside, analysts clearly believe Cosan is more favorable than Diversified Energy.

Risk & Volatility

Diversified Energy has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Cosan has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Institutional & Insider Ownership

26.5% of Diversified Energy shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diversified Energy	$794.84 million	0.87	-$88.27 million	N/A	N/A
Cosan	$8.15 billion	0.30	-$1.75 billion	$1.32	3.95

Diversified Energy has higher earnings, but lower revenue than Cosan.

Summary

Diversified Energy beats Cosan on 8 of the 14 factors compared between the two stocks.

About Diversified Energy

Diversified Energy Company PLC operates as an independent owner and operator of producing natural gas and oil wells primarily in the Appalachian Basin of the United States. The company is involved in the production, marketing, and transportation of natural gas, natural gas liquids, crude oil, and condensates. Its assets consist of natural gas wells and gathering systems located in the states of Tennessee, Kentucky, Virginia, West Virginia, Ohio, Pennsylvania, Oklahoma, Texas, and Louisiana. The company was formerly known as Diversified Gas & Oil PLC and changed its name to Diversified Energy Company PLC in May 2021. Diversified Energy Company PLC was founded in 2001 and is headquartered in Birmingham, Alabama.

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.