Calumet Specialty Products Partners (NASDAQ: CLMT) and Northern Tier Energy (NYSE:NTI) are both small-cap energy companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Analyst Recommendations

This is a summary of recent ratings and price targets for Calumet Specialty Products Partners and Northern Tier Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Calumet Specialty Products Partners 1 4 1 0 2.00
Northern Tier Energy 0 0 0 0 N/A

Calumet Specialty Products Partners currently has a consensus price target of $5.83, indicating a potential downside of 29.29%. Given Calumet Specialty Products Partners’ higher possible upside, research analysts clearly believe Calumet Specialty Products Partners is more favorable than Northern Tier Energy.

Risk & Volatility

Calumet Specialty Products Partners has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, Northern Tier Energy has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Earnings and Valuation

This table compares Calumet Specialty Products Partners and Northern Tier Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Calumet Specialty Products Partners $3.60 billion 0.18 -$328.60 million ($1.38) -5.98
Northern Tier Energy N/A N/A N/A $2.53 8.36

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

Profitability

This table compares Calumet Specialty Products Partners and Northern Tier Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Calumet Specialty Products Partners -2.81% -48.17% -3.84%
Northern Tier Energy 1.69% 12.03% 4.34%

Insider & Institutional Ownership

13.9% of Calumet Specialty Products Partners shares are owned by institutional investors. 4.8% of Calumet Specialty Products Partners shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Calumet Specialty Products Partners beats Northern Tier Energy on 6 of the 10 factors compared between the two stocks.

About Calumet Specialty Products Partners

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.

About Northern Tier Energy

Northern Tier Energy LP is a downstream energy limited partnership. The Company has refining, retail and logistics operations that serve the Petroleum Administration for Defense District II (PADD II) region of the United States. It operates through two segments: the refining business and the retail business. Its refining segment consists of over 97,800 barrels per stream day refinery located in St. Paul Park, Minnesota. Its refineries process light, heavy, sweet and sour crudes into refined products. It also owns storage and transportation assets. The retail segment operates over 170 convenience stores and supports over 110 franchised convenience stores, which are operated under the SuperAmerica brand. These convenience stores are located throughout Minnesota, Wisconsin and South Dakota and sell various grades of gasoline and diesel, tobacco products and immediately consumable items, such as beverages, prepared food and a range of snacks and prepackaged items.

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