Alon USA Energy (NYSE: ALJ) and Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Insider and Institutional Ownership

49.5% of Alon USA Energy shares are owned by institutional investors. Comparatively, 9.7% of Calumet Specialty Products Partners, L.P. shares are owned by institutional investors. 8.8% of Alon USA Energy shares are owned by insiders. Comparatively, 4.8% of Calumet Specialty Products Partners, L.P. 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.

Valuation & Earnings

This table compares Alon USA Energy and Calumet Specialty Products Partners, L.P.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Alon USA Energy N/A N/A N/A ($0.56) -23.79
Calumet Specialty Products Partners, L.P. $3.88 billion 0.15 $225.10 million ($1.39) -5.58

Calumet Specialty Products Partners, L.P. has higher revenue and earnings than Alon USA Energy. Alon USA Energy is trading at a lower price-to-earnings ratio than Calumet Specialty Products Partners, L.P., indicating that it is currently the more affordable of the two stocks.

Dividends

Alon USA Energy pays an annual dividend of $0.60 per share and has a dividend yield of 4.5%. Calumet Specialty Products Partners, L.P. does not pay a dividend. Alon USA Energy pays out -107.1% of its earnings in the form of a dividend. Alon USA Energy has raised its dividend for 4 consecutive years.

Risk and Volatility

Alon USA Energy has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, Calumet Specialty Products Partners, L.P. has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Alon USA Energy and Calumet Specialty Products Partners, L.P., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alon USA Energy 0 3 1 0 2.25
Calumet Specialty Products Partners, L.P. 1 5 1 0 2.00

Alon USA Energy presently has a consensus target price of $11.38, indicating a potential downside of 14.60%. Calumet Specialty Products Partners, L.P. has a consensus target price of $5.17, indicating a potential downside of 33.33%. Given Alon USA Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Alon USA Energy is more favorable than Calumet Specialty Products Partners, L.P..

Profitability

This table compares Alon USA Energy and Calumet Specialty Products Partners, L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alon USA Energy 0.89% 5.65% 1.96%
Calumet Specialty Products Partners, L.P. -2.81% -48.17% -3.84%

Summary

Alon USA Energy beats Calumet Specialty Products Partners, L.P. on 11 of the 13 factors compared between the two stocks.

Alon USA Energy Company Profile

Alon USA Energy, Inc. is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. The Company’s segments include refining and marketing, asphalt and retail. Its refineries produce petroleum products, including various grades of gasoline, diesel, jet fuel, petrochemicals, petrochemical feedstocks, asphalt, and other petroleum-based products. As of December 31, 2016, it held interests in Alon USA Partners, LP, which owned a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, it owned a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of approximately 74,000 barrels per day (bpd), as of December 31, 2016. The Company also owns crude oil refineries in California. As of December 31, 2016, it operated approximately 300 convenience stores.

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.

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