Calumet (NASDAQ:CLMT) versus Epsilon Energy (NASDAQ:EPSN) Head-To-Head Comparison

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

Institutional & Insider Ownership

34.4% of Calumet shares are owned by institutional investors. Comparatively, 60.3% of Epsilon Energy shares are owned by institutional investors. 4.1% of Calumet shares are owned by company insiders. Comparatively, 7.1% of Epsilon Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Calumet has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Epsilon Energy has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500.

Profitability

This table compares Calumet and Epsilon Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Calumet	-11.09%	N/A	-12.65%
Epsilon Energy	11.75%	6.71%	5.39%

Earnings & Valuation

This table compares Calumet and Epsilon Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Calumet	$4.19 billion	0.34	-$222.00 million	($5.22)	-3.12
Epsilon Energy	$31.52 million	4.10	$1.93 million	$0.24	24.42

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

Analyst Ratings

This is a breakdown of recent ratings for Calumet and Epsilon Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Calumet	0	2	4	0	2.67
Epsilon Energy	0	0	1	1	3.50

Calumet presently has a consensus price target of $18.71, suggesting a potential upside of 14.78%. Epsilon Energy has a consensus price target of $7.70, suggesting a potential upside of 31.40%. Given Epsilon Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Epsilon Energy is more favorable than Calumet.

Summary

Epsilon Energy beats Calumet on 12 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 Epsilon Energy

Epsilon Energy Ltd., a North American onshore independent natural gas and oil company, engages in the acquisition, development, gathering, and production of natural oil and gas reserves in the United States. The company operates through Upstream and Gathering System segments. It has natural gas production in the Marcellus Shale in Pennsylvania; and oil, natural gas liquids, and natural gas production in the Permian Basin in Texas and New Mexico, and Anadarko Basin in Oklahoma. Epsilon Energy Ltd. was incorporated in 2005 and is based in Calgary, Canada.