Tootsie Roll Industries (NYSE:TR) versus Cosan (NYSE:CSAN) Critical Review

Tootsie Roll Industries (NYSE:TR) and Cosan (NYSE:CSAN) are both consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Insider and Institutional Ownership

19.7% of Tootsie Roll Industries shares are held by institutional investors. 67.9% of Tootsie Roll Industries shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Tootsie Roll Industries and Cosan’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tootsie Roll Industries $467.43 million 4.98 $58.99 million N/A N/A
Cosan $5.01 billion 0.97 $333.56 million N/A N/A

Cosan has higher revenue and earnings than Tootsie Roll Industries.

Dividends

Tootsie Roll Industries pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. Cosan pays an annual dividend of $1.31 per share and has a dividend yield of 6.6%. Tootsie Roll Industries has increased its dividend for 1 consecutive years.

Risk and Volatility

Tootsie Roll Industries has a beta of -0.12, indicating that its stock price is 112% less volatile than the S&P 500. Comparatively, Cosan has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Tootsie Roll Industries and Cosan, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tootsie Roll Industries 0 0 0 0 N/A
Cosan 0 1 0 0 2.00

Profitability

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 12.39% 7.62% 5.90%
Cosan 8.50% 11.14% 2.58%

Summary

Tootsie Roll Industries beats Cosan on 6 of the 11 factors compared between the two stocks.

Tootsie Roll Industries Company Profile

Tootsie Roll Industries, Inc., together with its subsidiaries, manufactures and sells confectionery products primarily in the United States, Canada, Mexico, and internationally. 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. It sells its products directly to wholesale distributors of candy, food 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 food and grocery brokers. The company was founded in 1896 and is based in Chicago, Illinois.

Cosan Company Profile

Cosan S.A., through its subsidiaries, primarily engages in the fuel distribution business in Brazil, Europe, Latin America, North America, Asia, and internationally. It operates through Raízen Energia, Raízen Combustíveis, Gas and Energy, and Moove segments. 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 also engages 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 through a franchised network of service stations under the Shell brand. This segment also engages in the petroleum refining; operation of convenience stores; manufacture and sale of automotive and industrial lubricants; and production and sale of liquefied petroleum gas. The company's Gas and Energy segment distributes piped natural gas to customers in the industrial, residential, commercial, automotive, and cogeneration sectors; and engages in purchase and sale of electricity to other traders. Its Moove segment produces and distributes lubricants under the Mobil and Comma brands. The company was founded in 1936 and is headquartered in São Paulo, Brazil.

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