Calumet (NASDAQ:CLMT) versus Green Plains (NASDAQ:GPRE) Financial Review

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Green Plains and Calumet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Green Plains	0	5	2	0	2.29
Calumet	1	3	2	1	2.43

Green Plains currently has a consensus target price of $17.00, indicating a potential upside of 19.80%. Calumet has a consensus target price of $51.75, indicating a potential downside of 7.67%. Given Green Plains’ higher possible upside, research analysts plainly believe Green Plains is more favorable than Calumet.

Volatility & Risk

Green Plains has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Calumet has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

Insider & Institutional Ownership

34.4% of Calumet shares are owned by institutional investors. 1.4% of Green Plains shares are owned by insiders. Comparatively, 3.2% of Calumet shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Green Plains and Calumet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Green Plains	6.78%	14.52%	7.33%
Calumet	-2.98%	N/A	-4.24%

Earnings & Valuation

This table compares Green Plains and Calumet”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Green Plains	$2.09 billion	0.48	-$121.28 million	$1.59	8.92
Calumet	$4.14 billion	1.19	-$33.80 million	($1.55)	-36.16

Calumet has higher revenue and earnings than Green Plains. Calumet is trading at a lower price-to-earnings ratio than Green Plains, indicating that it is currently the more affordable of the two stocks.

About Green Plains

Green Plains Inc. produces low-carbon fuels in the United States and internationally. It operates through three segments: Ethanol Production, Agribusiness and Energy Services, and Partnership. The Ethanol Production segment produces ethanol, distillers grains, and ultra-high protein and renewable corn oil. The Agribusiness and Energy Services segment engages in the grain procurement, handling and storage, commodity marketing business; and trading of ethanol, distiller grains, renewable corn oil, grain, natural gas, and other commodities in various markets. This segment also provides grain drying and storage services to grain producers. The Partnership segment offers fuel storage and transportation services. It operates 24 ethanol storage facilities; two fuel terminal facilities; and a fleet of approximately 2,180 leased railcars. The company was formerly known as Green Plains Renewable Energy, Inc. and changed its name to Green Plains Inc. in May 2014. Green Plains Inc. was incorporated in 2004 and is headquartered in Omaha, Nebraska.

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.