Marathon Petroleum (NASDAQ: CLMT) and Calumet Specialty Products Partners, L.P (NASDAQ:CLMT) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, institutional ownership, dividends and earnings.

Earnings and Valuation

This table compares Marathon Petroleum and Calumet Specialty Products Partners, L.P’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Marathon Petroleum $75.37 billion 0.46 $3.43 billion $3.80 20.29
Calumet Specialty Products Partners, L.P $3.76 billion 0.14 -$103.80 million ($0.56) -12.10

Marathon Petroleum has higher revenue and earnings than Calumet Specialty Products Partners, L.P. Calumet Specialty Products Partners, L.P is trading at a lower price-to-earnings ratio than Marathon Petroleum, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Marathon Petroleum has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, Calumet Specialty Products Partners, L.P has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Dividends

Marathon Petroleum pays an annual dividend of $1.84 per share and has a dividend yield of 2.4%. Calumet Specialty Products Partners, L.P does not pay a dividend. Marathon Petroleum pays out 48.4% of its earnings in the form of a dividend. Marathon Petroleum has increased its dividend for 7 consecutive years and Calumet Specialty Products Partners, L.P has increased its dividend for 8 consecutive years.

Institutional and Insider Ownership

81.3% of Marathon Petroleum shares are owned by institutional investors. Comparatively, 13.4% of Calumet Specialty Products Partners, L.P shares are owned by institutional investors. 1.1% of Marathon Petroleum shares are owned by company insiders. Comparatively, 4.8% of Calumet Specialty Products Partners, L.P shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Marathon Petroleum and Calumet Specialty Products Partners, L.P, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marathon Petroleum 0 3 15 0 2.83
Calumet Specialty Products Partners, L.P 0 2 1 0 2.33

Marathon Petroleum presently has a consensus target price of $85.44, indicating a potential upside of 10.80%. Calumet Specialty Products Partners, L.P has a consensus target price of $8.00, indicating a potential upside of 18.08%. Given Calumet Specialty Products Partners, L.P’s higher probable upside, analysts plainly believe Calumet Specialty Products Partners, L.P is more favorable than Marathon Petroleum.

Profitability

This table compares Marathon Petroleum and Calumet Specialty Products Partners, L.P’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marathon Petroleum 4.89% 12.83% 5.07%
Calumet Specialty Products Partners, L.P -3.94% -38.38% -1.86%

Summary

Marathon Petroleum beats Calumet Specialty Products Partners, L.P on 13 of the 17 factors compared between the two stocks.

About Marathon Petroleum

Marathon Petroleum Corporation, together with its subsidiaries, engages in refining, marketing, retailing, and transporting petroleum products primarily in the United States. It operates through three segments: Refining & Marketing, Speedway, and Midstream. It refines crude oil and other feed stocks at its six refineries in the Gulf Coast and Midwest regions of the United States; and purchases refined products and ethanol for resale. Its refined products include gasoline, distillates, propane, feed stocks and special products, heavy fuel oil, and asphalt. It also sells transportation fuels and convenience products in the retail market through Speedway convenience stores; gathers, processes, and transports natural gas; gathers, transports, fractionates, stores, and markets natural gas liquids (NGLs); and transports and stores crude oil and refined products. It markets its refined products to resellers, consumers, independent retailers, wholesale customers, its Marathon brand jobbers and Speedway brand convenience stores, airlines, transportation companies, and utilities. It also exports its refined products. As of December 31, 2017, it owned and operated 18 asphalt terminals and 61 light products terminals; 2,744 convenience stores in 21 states; 289 transport trucks and 296 trailers; 1,999 leased and 19 owned railcars; and owned/leased and operated 1,613 miles of common carrier crude oil and 2,360 miles of common carrier products pipelines, as well as had 5,617 retail outlets in 20 states and the District of Columbia, and interests in 2,194 miles of crude oil and 1,917 miles of products pipelines. It also owns and operates 228 miles of private products pipelines; has ownership interests in 739 miles of common carrier crude oil pipeline and 1,741 miles of products pipelines; and distributes refined products through approximately 130 light products and 2 asphalt third-party terminals. The company was incorporated in 2009 and is headquartered in Findlay, Ohio.

About Calumet Specialty Products Partners, L.P

Calumet Specialty Products Partners, L.P. produces and sells specialty hydrocarbon products in North America and internationally. It operates in two segments, Specialty Products and Fuel Products. The Specialty Products segment offers various lubricating oils, white mineral oils, solvents, petrolatums, waxes, synthetic lubricants, and other products which are used primarily as raw material components for basic automotive, industrial, and consumer goods. The Fuel Products segment provides fuel and fuel-related products, including gasoline, diesel, jet fuel, asphalt, and heavy fuel oils, as well as resells purchased crude oil to third party customers. Calumet GP, LLC serves as the general partner for Calumet Specialty Products Partners, L.P. The company was founded in 1916 and is headquartered in Indianapolis, Indiana.

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