Phillips 66 (PSX) & Calumet Specialty Products Partners, L.P (CLMT) Head to Head Comparison

Phillips 66 (NYSE:PSX) and Calumet Specialty Products Partners, L.P (NASDAQ:CLMT) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Volatility and Risk

Phillips 66 has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Calumet Specialty Products Partners, L.P has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500.

Institutional and Insider Ownership

69.4% of Phillips 66 shares are held by institutional investors. Comparatively, 14.0% of Calumet Specialty Products Partners, L.P shares are held by institutional investors. 0.6% of Phillips 66 shares are held by insiders. Comparatively, 4.8% of Calumet Specialty Products Partners, L.P shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Phillips 66 pays an annual dividend of $3.20 per share and has a dividend yield of 2.8%. Calumet Specialty Products Partners, L.P does not pay a dividend. Phillips 66 pays out 73.1% of its earnings in the form of a dividend. Phillips 66 has raised its dividend for 6 consecutive years and Calumet Specialty Products Partners, L.P has raised its dividend for 8 consecutive years.

Earnings & Valuation

This table compares Phillips 66 and Calumet Specialty Products Partners, L.P’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Phillips 66 $104.62 billion 0.51 $5.11 billion $4.38 26.23
Calumet Specialty Products Partners, L.P $3.76 billion 0.13 -$103.80 million ($0.56) -11.43

Phillips 66 has higher revenue and earnings than Calumet Specialty Products Partners, L.P. Calumet Specialty Products Partners, L.P is trading at a lower price-to-earnings ratio than Phillips 66, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings for Phillips 66 and Calumet Specialty Products Partners, L.P, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Phillips 66 2 9 7 0 2.28
Calumet Specialty Products Partners, L.P 0 1 1 0 2.50

Phillips 66 presently has a consensus target price of $114.01, indicating a potential downside of 0.76%. Calumet Specialty Products Partners, L.P has a consensus target price of $7.50, indicating a potential upside of 17.19%. Given Calumet Specialty Products Partners, L.P’s stronger consensus rating and higher possible upside, analysts clearly believe Calumet Specialty Products Partners, L.P is more favorable than Phillips 66.

Profitability

This table compares Phillips 66 and Calumet Specialty Products Partners, L.P’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Phillips 66 5.34% 12.87% 6.05%
Calumet Specialty Products Partners, L.P -3.94% -45.02% -1.97%

Summary

Phillips 66 beats Calumet Specialty Products Partners, L.P on 11 of the 17 factors compared between the two stocks.

About Phillips 66

Phillips 66 operates as an energy manufacturing and logistics company. It operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment transports crude oil and other feedstocks, delivers refined products to market, and provides terminaling and storage services for crude oil and petroleum products; transports, stores, fractionates, and markets natural gas liquids, exports LPG, and provides other fee-based processing services; and gathers, processes, transports, and markets natural gas. The Chemicals segment manufactures and markets ethylene and other olefin products; aromatics and styrenics products, such as benzene, styrene, paraxylene, and cyclohexane, as well as polystyrene; and various specialty chemical products, including organosulfur chemicals, solvents, catalysts, drilling chemicals, and mining chemicals. The Refining segment buys, sells, and refines crude oil and other feedstocks into petroleum products comprising gasolines, distillates, and aviation fuels at 13 refineries primarily in the United States and Europe. The M&S segment purchases for resale and markets refined petroleum products consisting of gasolines, distillates, and aviation fuels primarily in the United States and Europe. It also manufactures and sells specialty products, such as petroleum coke products, waxes, solvents, and polypropylene. In addition, this segment generates electricity and provides merchant power into the Texas market. Phillips 66 was founded in 1875 and is headquartered in Houston, Texas.

About Calumet Specialty Products Partners, L.P

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.

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