Financial Analysis: Calumet Specialty Products Partners, L.P (CLMT) and BP (BP)

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

Analyst Ratings

This is a summary of current ratings and target prices for Calumet Specialty Products Partners, L.P and BP, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Calumet Specialty Products Partners, L.P 0 1 0 0 2.00
BP 0 3 9 2 2.93

Calumet Specialty Products Partners, L.P currently has a consensus price target of $5.00, indicating a potential downside of 20.26%. BP has a consensus price target of $52.73, indicating a potential upside of 15.10%. Given BP’s stronger consensus rating and higher probable upside, analysts clearly believe BP is more favorable than Calumet Specialty Products Partners, L.P.

Profitability

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

Net Margins Return on Equity Return on Assets
Calumet Specialty Products Partners, L.P -3.94% -45.02% -1.97%
BP 2.55% 9.28% 3.41%

Dividends

BP pays an annual dividend of $2.44 per share and has a dividend yield of 5.3%. Calumet Specialty Products Partners, L.P does not pay a dividend. BP pays out 129.8% 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.

Volatility & Risk

Calumet Specialty Products Partners, L.P has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, BP has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Calumet Specialty Products Partners, L.P $3.76 billion 0.13 -$103.80 million ($0.56) -11.20
BP $244.58 billion 0.62 $3.39 billion $1.88 24.37

BP 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 BP, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

14.0% of Calumet Specialty Products Partners, L.P shares are owned by institutional investors. Comparatively, 10.7% of BP shares are owned by institutional investors. 4.8% of Calumet Specialty Products Partners, L.P shares are owned by insiders. Comparatively, 1.0% of BP shares are owned 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.

Summary

BP beats Calumet Specialty Products Partners, L.P on 13 of the 18 factors compared between the two stocks.

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.

About BP

BP p.l.c. engages in energy business worldwide. It operates through three segments: Upstream, Downstream, and Rosneft. The Upstream segment is involved in the oil and natural gas exploration, field development, and production; midstream transportation, storage, and processing; and marketing and trading of liquefied natural gas (LNG), biogas, power and natural gas liquids (NGLs). This segment also engages in the ownership and management of crude oil and natural gas pipelines; processing facilities and export terminals; and LNG processing facilities and transportation, as well as in NGLs processing business. The Downstream segment refines, manufactures, markets, transports, supplies, and trades in crude oil, petroleum, and petrochemical products and related services to wholesale and retail customers. It offers gasoline, diesel, and aviation fuel; lubricants, and related products and services to the automotive, industrial, marine, and energy markets under the Castrol, BP, and Aral brands; and petrochemical products, such as purified terephthalic acid, paraxylene, acetic acid, olefins and derivatives, and specialty petrochemical products. The Rosneft segment engages in the exploration and production of hydrocarbons, as well as jet fuel, bunkering, bitumen, and lubricants activities. This segment also owns and operates 13 refineries in Russia; and approximately 2,960 retail service stations in Russia and internationally. The company also produces ethanol, bio-isobutanol, bio-power, and solar energy; transports hydrocarbon products through time-chartered and spot-chartered vessels; and holds interests in 14 onshore wind sites with a generation capacity of 1,432 megawatts through wind. BP p.l.c. was founded in 1889 and is headquartered in London, the United Kingdom.

Receive News & Ratings for Calumet Specialty Products Partners L.P Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Calumet Specialty Products Partners L.P and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply