Reviewing Calumet Specialty Products Partners, L.P. (CLMT) & Chevron Corporation (CVX)

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

Insider and Institutional Ownership

9.7% of Calumet Specialty Products Partners, L.P. shares are owned by institutional investors. Comparatively, 62.7% of Chevron Corporation shares are owned by institutional investors. 4.8% of Calumet Specialty Products Partners, L.P. shares are owned by insiders. Comparatively, 0.4% of Chevron Corporation 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Calumet Specialty Products Partners, L.P. and Chevron Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Calumet Specialty Products Partners, L.P. 1 5 1 0 2.00
Chevron Corporation 3 3 15 0 2.57

Calumet Specialty Products Partners, L.P. presently has a consensus price target of $5.17, suggesting a potential downside of 32.46%. Chevron Corporation has a consensus price target of $116.94, suggesting a potential upside of 1.52%. Given Chevron Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Chevron Corporation is more favorable than Calumet Specialty Products Partners, L.P..

Dividends

Chevron Corporation pays an annual dividend of $4.32 per share and has a dividend yield of 3.8%. Calumet Specialty Products Partners, L.P. does not pay a dividend. Chevron Corporation pays out 140.3% 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 raised its dividend for 31 consecutive years.

Volatility & Risk

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

Valuation and Earnings

This table compares Calumet Specialty Products Partners, L.P. and Chevron Corporation’s top-line 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. $3.88 billion 0.15 $225.10 million ($1.39) -5.50
Chevron Corporation $116.78 billion 1.87 $19.04 billion $3.08 37.40

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

Profitability

This table compares Calumet Specialty Products Partners, L.P. and Chevron 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%
Chevron Corporation 4.50% 4.13% 2.36%

Summary

Chevron Corporation beats Calumet Specialty Products Partners, L.P. on 12 of the 15 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.

Chevron Corporation Company Profile

Chevron Corporation (Chevron) manages its investments in subsidiaries and affiliates, and provides administrative, financial, management and technology support to the United States and international subsidiaries that engage in integrated energy and chemicals operations. The Company operates through two business segments: Upstream and Downstream. Upstream operations consist primarily of exploring for, developing and producing crude oil and natural gas; liquefaction, transportation and regasification associated with liquefied natural gas; transporting crude oil by international oil export pipelines; processing, transporting, storage and marketing of natural gas, and a gas-to-liquids plant. Downstream operations consist primarily of refining of crude oil into petroleum products; marketing of crude oil and refined products; transporting of crude oil and refined products, and manufacturing and marketing of commodity petrochemicals.

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