Critical Contrast: Calumet (NASDAQ:CLMT) versus Galp Energia SGPS (OTCMKTS:GLPEY)

Galp Energia SGPS (OTCMKTS:GLPEY) and Calumet (NASDAQ:CLMT) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of current ratings for Galp Energia SGPS and Calumet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Galp Energia SGPS	0	5	3	1	2.56
Calumet	1	4	2	0	2.14

Calumet has a consensus target price of $54.75, indicating a potential upside of 52.55%. Given Calumet’s higher probable upside, analysts plainly believe Calumet is more favorable than Galp Energia SGPS.

Profitability

This table compares Galp Energia SGPS and Calumet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Galp Energia SGPS	4.55%	28.78%	9.53%
Calumet	-3.73%	-32.93%	11.09%

Valuation & Earnings

This table compares Galp Energia SGPS and Calumet”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Galp Energia SGPS	$22.89 billion	0.62	$1.27 billion	$0.81	12.88
Calumet	$4.14 billion	0.76	-$33.80 million	($2.25)	-15.95

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

Institutional & Insider Ownership

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

Volatility & Risk

Galp Energia SGPS has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500. Comparatively, Calumet has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Summary

Galp Energia SGPS beats Calumet on 9 of the 15 factors compared between the two stocks.

About Galp Energia SGPS

Galp Energia SGPS, S.A. is a Portuguese integrated energy company with activities spanning oil and natural gas exploration and production, refining, energy trading and retail sales. The company also supplies natural gas and electricity to residential and business customers. Galp was established in 1999 through the consolidation of Portugal’s oil and gas interests. Its operations are centered in Portugal and extend to international markets, including Brazil, where it has upstream oil and gas activities.

About Calumet

Calumet, Inc. is a U.S.-based producer of specialty hydrocarbon products, renewable fuels and conventional fuels. Its products serve customers in industries such as manufacturing, transportation, energy and consumer goods. The company’s specialty products include lubricating oils, solvents, waxes, petrolatums and asphalt. It also produces gasoline, diesel and other fuels, and through its Montana Renewables business makes lower-carbon fuels, including sustainable aviation fuel and renewable diesel.