Financial Comparison: Calumet (NASDAQ:CLMT) and Cross Timbers Royalty Trust (NYSE:CRT)

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

Risk and Volatility

Calumet has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Cross Timbers Royalty Trust has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Calumet	$4.14 billion	1.23	-$33.80 million	($1.55)	-37.26
Cross Timbers Royalty Trust	$5.79 million	13.27	$6.15 million	$0.53	24.16

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Calumet and Cross Timbers Royalty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Calumet	1	3	2	1	2.43
Cross Timbers Royalty Trust	0	1	0	0	2.00

Calumet presently has a consensus price target of $51.75, suggesting a potential downside of 10.39%. Given Calumet’s stronger consensus rating and higher possible upside, research analysts clearly believe Calumet is more favorable than Cross Timbers Royalty Trust.

Profitability

This table compares Calumet and Cross Timbers 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%
Cross Timbers Royalty Trust	74.04%	147.68%	81.96%

Insider and Institutional Ownership

34.4% of Calumet shares are held by institutional investors. Comparatively, 9.7% of Cross Timbers Royalty Trust shares are held by institutional investors. 3.2% of Calumet shares are held by company insiders. Comparatively, 9.4% of Cross Timbers Royalty Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Cross Timbers Royalty Trust beats Calumet on 8 of the 15 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 Cross Timbers Royalty Trust

Cross Timbers Royalty Trust operates as an express trust in the United States. It holds 90% net profits interests in certain producing and nonproducing royalty and overriding royalty interest properties in Texas, Oklahoma, and New Mexico; and 75% net profits working interest in four properties in Texas and three properties in Oklahoma. The company was founded in 1991 and is based in Dallas, Texas.