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

Profitability

This table compares Calumet Specialty Products Partners, L.P. and HollyFrontier Corporation’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%
HollyFrontier Corporation 1.13% 2.65% 1.50%

Insider & Institutional Ownership

9.7% of Calumet Specialty Products Partners, L.P. shares are owned by institutional investors. Comparatively, 83.8% of HollyFrontier Corporation shares are owned by institutional investors. 4.8% of Calumet Specialty Products Partners, L.P. shares are owned by insiders. Comparatively, 0.5% of HollyFrontier Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Calumet Specialty Products Partners, L.P. has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, HollyFrontier Corporation has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Dividends

HollyFrontier Corporation pays an annual dividend of $1.32 per share and has a dividend yield of 4.1%. Calumet Specialty Products Partners, L.P. does not pay a dividend. HollyFrontier Corporation pays out 167.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. HollyFrontier Corporation has raised its dividend for 5 consecutive years.

Analyst Ratings

This is a summary of current recommendations and price targets for Calumet Specialty Products Partners, L.P. and HollyFrontier Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Calumet Specialty Products Partners, L.P. 1 5 1 0 2.00
HollyFrontier Corporation 2 5 4 0 2.18

Calumet Specialty Products Partners, L.P. currently has a consensus target price of $5.17, suggesting a potential downside of 35.42%. HollyFrontier Corporation has a consensus target price of $31.33, suggesting a potential downside of 2.57%. Given HollyFrontier Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe HollyFrontier Corporation is more favorable than Calumet Specialty Products Partners, L.P..

Valuation & Earnings

This table compares Calumet Specialty Products Partners, L.P. and HollyFrontier Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Calumet Specialty Products Partners, L.P. N/A N/A N/A ($1.39) -5.76
HollyFrontier Corporation $12.34 billion 0.46 $733.52 million $0.79 40.71

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

Summary

HollyFrontier Corporation beats Calumet Specialty Products Partners, L.P. on 11 of the 14 factors compared between the two stocks.

Calumet Specialty Products Partners, L.P. Company Profile

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.

HollyFrontier Corporation Company Profile

HollyFrontier Corporation is an independent petroleum refiner. The Company produces various light products, such as gasoline, diesel fuel, jet fuel, specialty lubricant products, and specialty and modified asphalt. It segments include Refining and Holly Energy Partners, L.P. (HEP). The Refining segment includes the operations of the Company’s El Dorado, Kansas (the El Dorado Refinery); refinery facilities located in Tulsa, Oklahoma (collectively, the Tulsa Refineries); a refinery in Artesia, New Mexico that is operated in conjunction with crude oil distillation and vacuum distillation and other facilities situated 65 miles away in Lovington, New Mexico (collectively, the Navajo Refinery); refinery located in Cheyenne, Wyoming (the Cheyenne Refinery); a refinery in Woods Cross, Utah (the Woods Cross Refinery), and HollyFrontier Asphalt Company (HFC Asphalt). The HEP segment involves all of the operations of HEP. HEP is a limited partnership, which owns and operates logistic assets.

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