Delek US Holdings (DK) & Calumet Specialty Products Partners, L.P. (CLMT) Head to Head Review

Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) and Delek US Holdings (NYSE:DK) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.

Dividends

Delek US Holdings pays an annual dividend of $0.60 per share and has a dividend yield of 2.3%. Calumet Specialty Products Partners, L.P. does not pay a dividend. Delek US Holdings pays out -25.9% of its earnings in the form of a dividend.

Profitability

This table compares Calumet Specialty Products Partners, L.P. and Delek US Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Calumet Specialty Products Partners, L.P. -2.81% -48.17% -3.84%
Delek US Holdings -3.15% -4.60% -1.80%

Valuation & Earnings

This table compares Calumet Specialty Products Partners, L.P. and Delek US Holdings’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Calumet Specialty Products Partners, L.P. $3.88 billion 0.16 $225.10 million ($1.39) -5.97
Delek US Holdings $4.58 billion 0.46 $55.10 million ($2.32) -11.21

Calumet Specialty Products Partners, L.P. has higher revenue, but lower earnings than Delek US Holdings. Delek US Holdings 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.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Calumet Specialty Products Partners, L.P. and Delek US Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Calumet Specialty Products Partners, L.P. 1 4 1 0 2.00
Delek US Holdings 0 7 5 0 2.42

Calumet Specialty Products Partners, L.P. currently has a consensus target price of $5.83, indicating a potential downside of 29.72%. Delek US Holdings has a consensus target price of $29.00, indicating a potential upside of 11.54%. Given Delek US Holdings’ stronger consensus rating and higher probable upside, analysts plainly believe Delek US Holdings is more favorable than Calumet Specialty Products Partners, L.P..

Volatility & Risk

Calumet Specialty Products Partners, L.P. has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Delek US Holdings has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500.

Institutional and Insider Ownership

10.0% of Calumet Specialty Products Partners, L.P. shares are held by institutional investors. Comparatively, 97.0% of Delek US Holdings shares are held by institutional investors. 4.8% of Calumet Specialty Products Partners, L.P. shares are held by insiders. Comparatively, 1.6% of Delek US Holdings shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Delek US Holdings beats Calumet Specialty Products Partners, L.P. on 11 of the 15 factors compared between the two stocks.

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.

Delek US Holdings Company Profile

Delek US Holdings, Inc. is a diversified downstream energy company. The Company has a broad platform consisting of refining, logistics, retail and wholesale marketing, renewables and asphalt operations. It operates through five segments: refining, logistics, asphalt, renewable and retail. Its refining assets consist of refineries operated in Tyler and Big Spring, Texas, El Dorado, Arkansas and Krotz Springs, Louisiana with a combined nameplate crude throughput capacity of 302,000 barrels per day. The Logistics segment gathers, transports and stores crude oil, as well as markets, distributes transports and stores refined production in the southeast United States and West Texas. Its asphalt operations consist of 14 owned or operated asphalt terminals serving markets from Tennessee to the west coast. Its Renewables segment consists of plants in Texas and Arkansas that produce biodiesel fuel. The Company’s convenience store retail business operates approximately 300 convenience stores.

Receive News & Ratings for Calumet Specialty Products Partners L.P. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Calumet Specialty Products Partners L.P. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply