Critical Contrast: Calumet (NASDAQ:CLMT) & Sabine Royalty Trust (NYSE:SBR)

Sabine Royalty Trust (NYSE:SBR) and Calumet (NASDAQ:CLMT) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

This table compares Sabine Royalty Trust and Calumet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sabine Royalty Trust	94.90%	961.80%	839.84%
Calumet	-2.98%	N/A	-4.24%

Valuation & Earnings

This table compares Sabine Royalty Trust and Calumet”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sabine Royalty Trust	$77.53 million	13.24	$73.44 million	$4.90	14.36
Calumet	$4.14 billion	1.17	-$33.80 million	($1.55)	-35.66

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

Volatility & Risk

Sabine Royalty Trust has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500. Comparatively, Calumet has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Sabine Royalty Trust and Calumet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sabine Royalty Trust	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 6.39%. Given Calumet’s higher probable upside, analysts plainly believe Calumet is more favorable than Sabine Royalty Trust.

Institutional and Insider Ownership

15.8% of Sabine Royalty Trust shares are owned by institutional investors. Comparatively, 34.4% of Calumet shares are owned by institutional investors. 3.2% of Calumet shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Sabine Royalty Trust beats Calumet on 8 of the 14 factors compared between the two stocks.

About Sabine Royalty Trust

Sabine Royalty Trust holds royalty and mineral interests in various producing oil and gas properties in the United States. Its royalty and mineral interests include landowner's royalties, overriding royalty interests, minerals, production payments, and other similar non-participatory interest in certain producing and proved undeveloped oil and gas properties located in Florida, Louisiana, Mississippi, New Mexico, Oklahoma, and Texas. Sabine Royalty Trust was founded in 1982 and is based in Dallas, Texas.

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.