Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) and Alon USA Energy (NYSE:ALJ) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.

Dividends

Alon USA Energy pays an annual dividend of $0.60 per share and has a dividend yield of 4.5%. Calumet Specialty Products Partners, L.P. does not pay a dividend. Alon USA Energy pays out -107.1% of its earnings in the form of a dividend. Alon USA Energy has increased its dividend for 4 consecutive years.

Profitability

This table compares Calumet Specialty Products Partners, L.P. and Alon USA Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Calumet Specialty Products Partners, L.P. -2.81% -48.17% -3.84%
Alon USA Energy 0.89% 5.65% 1.96%

Institutional & Insider Ownership

9.7% of Calumet Specialty Products Partners, L.P. shares are owned by institutional investors. Comparatively, 49.5% of Alon USA Energy shares are owned by institutional investors. 4.8% of Calumet Specialty Products Partners, L.P. shares are owned by company insiders. Comparatively, 8.8% of Alon USA Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Calumet Specialty Products Partners, L.P. and Alon USA Energy’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Calumet Specialty Products Partners, L.P. $3.88 billion 0.16 $225.10 million ($1.39) -5.65
Alon USA Energy N/A N/A N/A ($0.56) -23.79

Calumet Specialty Products Partners, L.P. has higher revenue and earnings than Alon USA Energy. Alon USA Energy is trading at a lower price-to-earnings ratio than Calumet Specialty Products Partners, L.P., indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Calumet Specialty Products Partners, L.P. has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, Alon USA Energy has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Calumet Specialty Products Partners, L.P. and Alon USA Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Calumet Specialty Products Partners, L.P. 1 5 1 0 2.00
Alon USA Energy 0 3 1 0 2.25

Calumet Specialty Products Partners, L.P. presently has a consensus target price of $5.17, suggesting a potential downside of 34.18%. Alon USA Energy has a consensus target price of $11.38, suggesting a potential downside of 14.60%. Given Alon USA Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Alon USA Energy is more favorable than Calumet Specialty Products Partners, L.P..

Summary

Alon USA Energy beats Calumet Specialty Products Partners, L.P. on 11 of the 13 factors compared between the two stocks.

About Calumet Specialty Products Partners, L.P.

Calumet Specialty Products Partners, L.P. is a producer of specialty hydrocarbon products in North America. The Company operates through three segments: specialty products, fuel products and oilfield services. In its specialty products segment, the Company processes crude oil and other feedstocks into a range of customized lubricating oils, white mineral oils, solvents, petrolatums and waxes. Its specialty products are sold to domestic and international customers using its products as raw material components for basic industrial, consumer and automotive goods. It also blends and market specialty products through its Royal Purple, Bel-Ray, TruFuel and Quantum brands. In its fuel products segment, the Company processes crude oil into a range of fuel and fuel-related products, including gasoline, diesel, jet fuel, asphalt and heavy fuel oils, and resells purchased crude oil to third-party customers.

About Alon USA Energy

Alon USA Energy, Inc. is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. The Company’s segments include refining and marketing, asphalt and retail. Its refineries produce petroleum products, including various grades of gasoline, diesel, jet fuel, petrochemicals, petrochemical feedstocks, asphalt, and other petroleum-based products. As of December 31, 2016, it held interests in Alon USA Partners, LP, which owned a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, it owned a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of approximately 74,000 barrels per day (bpd), as of December 31, 2016. The Company also owns crude oil refineries in California. As of December 31, 2016, it operated approximately 300 convenience stores.

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