Critical Survey: REX American Resources (NYSE:REX) and Calumet (NASDAQ:CLMT)

REX American Resources (NYSE:REX) and Calumet (NASDAQ:CLMT) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Volatility & Risk

REX American Resources has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Calumet has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.

Valuation & Earnings

This table compares REX American Resources and Calumet”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
REX American Resources	$650.49 million	2.18	$82.95 million	$3.65	11.68
Calumet	$4.59 billion	1.07	-$33.80 million	($1.55)	-35.93

REX American Resources has higher earnings, but lower revenue than Calumet. Calumet is trading at a lower price-to-earnings ratio than REX American Resources, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

88.1% of REX American Resources shares are held by institutional investors. Comparatively, 34.4% of Calumet shares are held by institutional investors. 13.2% of REX American Resources shares are held by company insiders. Comparatively, 3.2% of Calumet shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for REX American Resources and Calumet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
REX American Resources	0	0	1	0	3.00
Calumet	1	4	2	0	2.14

Calumet has a consensus price target of $51.75, suggesting a potential downside of 7.07%. Given Calumet’s higher possible upside, analysts clearly believe Calumet is more favorable than REX American Resources.

Profitability

This table compares REX American Resources and Calumet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
REX American Resources	18.31%	16.90%	15.01%
Calumet	-2.98%	N/A	-4.24%

Summary

REX American Resources beats Calumet on 10 of the 14 factors compared between the two stocks.

About REX American Resources

REX American Resources Corporation, together with its subsidiaries, produces and sells ethanol in the United States. The company also offers corn, distillers grains, ethanol, distillers corn oil, gasoline, and natural gas. In addition, it provides dry distillers grains with solubles, which is used as a protein in animal feed. The company was formerly known as REX Stores Corporation and changed its name to REX American Resources Corporation in 2010. REX American Resources Corporation was founded in 1980 and is headquartered in Dayton, Ohio.

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.