Calumet (NASDAQ:CLMT – Get Free Report) and Green Plains (NASDAQ:GPRE – Get Free Report) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.
Insider and Institutional Ownership
34.4% of Calumet shares are held by institutional investors. 3.2% of Calumet shares are held by company insiders. Comparatively, 1.4% of Green Plains shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings for Calumet and Green Plains, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Calumet | 1 | 3 | 2 | 1 | 2.43 |
| Green Plains | 0 | 5 | 2 | 0 | 2.29 |
Calumet currently has a consensus target price of $51.75, suggesting a potential downside of 7.67%. Green Plains has a consensus target price of $17.00, suggesting a potential upside of 19.80%. Given Green Plains’ higher probable upside, analysts clearly believe Green Plains is more favorable than Calumet.
Profitability
This table compares Calumet and Green Plains’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Calumet | -2.98% | N/A | -4.24% |
| Green Plains | 6.78% | 14.52% | 7.33% |
Earnings & Valuation
This table compares Calumet and Green Plains”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Calumet | $4.14 billion | 1.19 | -$33.80 million | ($1.55) | -36.16 |
| Green Plains | $2.09 billion | 0.48 | -$121.28 million | $1.59 | 8.92 |
Calumet has higher revenue and earnings than Green Plains. Calumet is trading at a lower price-to-earnings ratio than Green Plains, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Calumet has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Green Plains has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.
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 Green Plains
Green Plains Inc. produces low-carbon fuels in the United States and internationally. It operates through three segments: Ethanol Production, Agribusiness and Energy Services, and Partnership. The Ethanol Production segment produces ethanol, distillers grains, and ultra-high protein and renewable corn oil. The Agribusiness and Energy Services segment engages in the grain procurement, handling and storage, commodity marketing business; and trading of ethanol, distiller grains, renewable corn oil, grain, natural gas, and other commodities in various markets. This segment also provides grain drying and storage services to grain producers. The Partnership segment offers fuel storage and transportation services. It operates 24 ethanol storage facilities; two fuel terminal facilities; and a fleet of approximately 2,180 leased railcars. The company was formerly known as Green Plains Renewable Energy, Inc. and changed its name to Green Plains Inc. in May 2014. Green Plains Inc. was incorporated in 2004 and is headquartered in Omaha, Nebraska.
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