Calumet (NASDAQ:CLMT – Get Free Report) and Baytex Energy (NYSE:BTE – Get Free Report) are both mid-cap energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.
Profitability
This table compares Calumet and Baytex Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Calumet | -2.98% | N/A | -4.24% |
| Baytex Energy | -26.43% | -7.77% | -4.86% |
Insider & Institutional Ownership
34.4% of Calumet shares are held by institutional investors. Comparatively, 46.1% of Baytex Energy shares are held by institutional investors. 3.2% of Calumet shares are held by company insiders. Comparatively, 0.8% of Baytex Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Calumet | 1 | 4 | 2 | 0 | 2.14 |
| Baytex Energy | 1 | 6 | 2 | 2 | 2.45 |
Calumet currently has a consensus target price of $51.75, indicating a potential downside of 6.39%. Given Calumet’s higher probable upside, analysts clearly believe Calumet is more favorable than Baytex Energy.
Valuation & Earnings
This table compares Calumet and Baytex Energy”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Calumet | $4.14 billion | 1.17 | -$33.80 million | ($1.55) | -35.66 |
| Baytex Energy | $2.56 billion | 1.25 | -$432.12 million | ($0.67) | -6.90 |
Calumet has higher revenue and earnings than Baytex Energy. Calumet is trading at a lower price-to-earnings ratio than Baytex Energy, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Calumet has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Baytex Energy has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.
Summary
Calumet beats Baytex Energy on 8 of the 14 factors compared between the two stocks.
About Calumet
Calumet, Inc. engages in the manufacturing, formulating, and marketing of a diversified slate of specialty branded products and renewable fuels to customers across a broad range of consumer-facing and industrial markets. It operates through the following segments: Specialty Products & Solutions, Performance Brands, Montana/Renewables, and Corporate. The Specialty Products & Solutions segment consists of customer-focused solutions and formulations businesses, covering multiple specialty product lines, anchored by a unique integrated complex in Northwest Louisiana. The Performance Brands segment includes a fast-growing portfolio of high-quality, high performing brands. The Montana/Renewables segment is composed of a Great Falls specialty asphalt facility and Montana Renewables facility. The Corporate segment focuses on the general and administrative expenses not allocated to the Montana/Renewables, Specialty Products and Solutions, or Performance Brands segments. The company was founded in 1919 and is headquartered in Indianapolis, IN.
About Baytex Energy
Baytex Energy Corp. is an oil & gas exploration and production company. The firm engages in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. The company was founded on June 3, 1993 and is headquartered in Calgary, Canada.
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