Contrasting Calumet (NASDAQ:CLMT) & Cactus (NYSE:WHD)

Cactus (NYSE:WHD) and Calumet (NASDAQ:CLMT) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Earnings and Valuation

This table compares Cactus and Calumet”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cactus	$1.13 billion	3.22	$185.41 million	$2.51	18.16
Calumet	$4.19 billion	0.42	-$222.00 million	($0.43)	-47.12

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Cactus and Calumet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cactus	0	5	2	0	2.29
Calumet	1	3	4	0	2.38

Cactus presently has a consensus target price of $50.20, suggesting a potential upside of 10.11%. Calumet has a consensus target price of $20.04, suggesting a potential downside of 1.08%. Given Cactus’ higher possible upside, analysts plainly believe Cactus is more favorable than Calumet.

Insider and Institutional Ownership

85.1% of Cactus shares are owned by institutional investors. Comparatively, 34.4% of Calumet shares are owned by institutional investors. 13.8% of Cactus shares are owned by insiders. Comparatively, 4.1% of Calumet shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Cactus has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, Calumet has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Profitability

This table compares Cactus and Calumet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cactus	15.86%	16.02%	11.82%
Calumet	-0.92%	N/A	-10.70%

Summary

Cactus beats Calumet on 11 of the 14 factors compared between the two stocks.

About Cactus

Cactus, Inc., together with its subsidiaries, designs, manufactures, sells, and leases pressure control and spoolable pipes in the United States, Australia, Canada, the Middle East, and internationally. It operates through two segments, Pressure Control and Spoolable Technologies. The Pressure Control segment designs, manufactures, sells, and rents a range of wellhead and pressure control equipment under the Cactus Wellhead brand name through service centers. Its products are sold and rented primarily for onshore unconventional oil and gas wells for drilling, completion, and production phases of the wells. This segment also provides field services to install, maintain, and handle the equipment. The Spoolable Technologies segment designs, manufactures, and sells spoolable pipes and associated end fittings under the FlexSteel brand name. Its products are primarily used to transport oil, gas, and other liquids. This segment also provides field services and rental items through service centers and pipe yards, as well as offers equipment and services internationally. In addition, the company offers repair and refurbishment services. Cactus, Inc. was founded in 2011 and is headquartered in Houston, Texas.

About Calumet

Calumet, Inc. engages in the manufacturing, formulating, and marketing of a diversified slate of specialty branded products and renewable fuels to customers across a broad range of consumer-facing and industrial markets. It operates through the following segments: Specialty Products & Solutions, Performance Brands, Montana/Renewables, and Corporate. The Specialty Products & Solutions segment consists of customer-focused solutions and formulations businesses, covering multiple specialty product lines, anchored by a unique integrated complex in Northwest Louisiana. The Performance Brands segment includes a fast-growing portfolio of high-quality, high performing brands. The Montana/Renewables segment is composed of a Great Falls specialty asphalt facility and Montana Renewables facility. The Corporate segment focuses on the general and administrative expenses not allocated to the Montana/Renewables, Specialty Products and Solutions, or Performance Brands segments. The company was founded in 1919 and is headquartered in Indianapolis, IN.