Head-To-Head Survey: Calumet (NASDAQ:CLMT) versus Sabine Royalty Trust (NYSE:SBR)

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

Institutional and Insider Ownership

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Calumet and Sabine Royalty Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Calumet	1	4	2	0	2.14
Sabine Royalty Trust	0	0	1	0	3.00

Calumet presently has a consensus price target of $51.75, indicating a potential downside of 3.54%. Given Calumet’s higher probable upside, research analysts clearly believe Calumet is more favorable than Sabine Royalty Trust.

Volatility & Risk

Calumet has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Sabine Royalty Trust has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Calumet	$4.14 billion	1.14	-$33.80 million	($1.55)	-34.61
Sabine Royalty Trust	$74.96 million	13.96	$73.44 million	$4.90	14.65

Sabine Royalty Trust has lower revenue, but higher earnings 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.

Profitability

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

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

Summary

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

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 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.