Financial Review: Calumet Specialty Products Partners, L.P (CLMT) and ConocoPhillips (COP)

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

Dividends

ConocoPhillips pays an annual dividend of $1.14 per share and has a dividend yield of 1.6%. Calumet Specialty Products Partners, L.P does not pay a dividend. ConocoPhillips pays out 190.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Calumet Specialty Products Partners, L.P has increased its dividend for 8 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Calumet Specialty Products Partners, L.P and ConocoPhillips, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Calumet Specialty Products Partners, L.P 0 2 1 0 2.33
ConocoPhillips 0 5 16 0 2.76

Calumet Specialty Products Partners, L.P currently has a consensus price target of $8.00, suggesting a potential upside of 2.56%. ConocoPhillips has a consensus price target of $67.53, suggesting a potential downside of 4.01%. Given Calumet Specialty Products Partners, L.P’s higher probable upside, analysts clearly believe Calumet Specialty Products Partners, L.P is more favorable than ConocoPhillips.

Volatility and Risk

Calumet Specialty Products Partners, L.P has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, ConocoPhillips has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.

Insider and Institutional Ownership

13.4% of Calumet Specialty Products Partners, L.P shares are owned by institutional investors. Comparatively, 71.0% of ConocoPhillips shares are owned by institutional investors. 4.8% of Calumet Specialty Products Partners, L.P shares are owned by company insiders. Comparatively, 0.9% of ConocoPhillips 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.

Profitability

This table compares Calumet Specialty Products Partners, L.P and ConocoPhillips’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Calumet Specialty Products Partners, L.P -2.21% -31.77% -1.75%
ConocoPhillips -1.64% 6.69% 2.76%

Valuation & Earnings

This table compares Calumet Specialty Products Partners, L.P and ConocoPhillips’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Calumet Specialty Products Partners, L.P $3.76 billion 0.16 -$103.80 million ($0.56) -13.93
ConocoPhillips $32.58 billion 2.53 -$855.00 million $0.60 117.25

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

Summary

ConocoPhillips beats Calumet Specialty Products Partners, L.P on 10 of the 16 factors compared between the two stocks.

Calumet Specialty Products Partners, L.P Company Profile

Calumet Specialty Products Partners, L.P. produces and sells specialty hydrocarbon products in North America and internationally. It operates in two segments, Specialty Products and Fuel Products. The Specialty Products segment offers various lubricating oils, white mineral oils, solvents, petrolatums, waxes, synthetic lubricants, and other products which are used primarily as raw material components for basic automotive, industrial, and consumer goods. The Fuel Products segment provides fuel and fuel-related products, including gasoline, diesel, jet fuel, asphalt, and heavy fuel oils, as well as resells purchased crude oil to third party customers. Calumet GP, LLC serves as the general partner for Calumet Specialty Products Partners, L.P. The company was founded in 1916 and is headquartered in Indianapolis, Indiana.

ConocoPhillips Company Profile

ConocoPhillips explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids worldwide. Its portfolio includes North American tight oil and oil sands assets in Canada; conventional assets in North America, Europe, Asia, and Australia; various LNG developments; and an inventory of conventional and unconventional exploration prospects. The company was founded in 1917 and is headquartered in Houston, Texas.

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