Financial Analysis: National Fuel Gas (NYSE:NFG) vs. Calumet (NASDAQ:CLMT)

National Fuel Gas (NYSE:NFG) and Calumet (NASDAQ:CLMT) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Dividends

National Fuel Gas pays an annual dividend of $2.14 per share and has a dividend yield of 2.4%. Calumet pays an annual dividend of $2.74 per share and has a dividend yield of 17.0%. National Fuel Gas pays out 497.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Calumet pays out -68.5% of its earnings in the form of a dividend. National Fuel Gas has raised its dividend for 55 consecutive years. Calumet is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares National Fuel Gas and Calumet”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Fuel Gas	$1.94 billion	4.14	$77.51 million	$0.43	207.19
Calumet	$4.18 billion	0.33	-$222.00 million	($4.00)	-4.04

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

Insider & Institutional Ownership

74.0% of National Fuel Gas shares are owned by institutional investors. Comparatively, 34.4% of Calumet shares are owned by institutional investors. 1.4% of National Fuel Gas shares are owned by company insiders. Comparatively, 4.1% of Calumet shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares National Fuel Gas and Calumet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Fuel Gas	1.91%	18.55%	6.34%
Calumet	-8.20%	N/A	-8.77%

Volatility & Risk

National Fuel Gas has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Calumet has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for National Fuel Gas and Calumet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Fuel Gas	0	1	2	1	3.00
Calumet	0	2	4	0	2.67

National Fuel Gas presently has a consensus target price of $95.33, suggesting a potential upside of 7.01%. Calumet has a consensus target price of $18.50, suggesting a potential upside of 14.62%. Given Calumet’s higher probable upside, analysts clearly believe Calumet is more favorable than National Fuel Gas.

Summary

National Fuel Gas beats Calumet on 11 of the 18 factors compared between the two stocks.

About National Fuel Gas

National Fuel Gas Company operates as a diversified energy company. It operates through four segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. The Exploration and Production segment explores for, develops, and produces natural gas and oil. The Pipeline and Storage segment provides interstate natural gas transportation services through an integrated gas pipeline system in Pennsylvania and New York; and owns and operates underground natural gas storage fields. This segment also transports natural gas for National Fuel Gas Distribution Corporation, as well as for other utilities, industrial companies, and power producers in New York State. The Gathering segment builds, owns, and operates natural gas processing and pipeline gathering facilities in the Appalachian region, as well as provides gathering services to Seneca. The Utility segment sells natural gas or provides natural gas utility services to various customers in Buffalo, Niagara Falls, and Jamestown, New York; and Erie and Sharon, Pennsylvania. National Fuel Gas Company was incorporated in 1902 and is headquartered in Williamsville, New York.

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.