Contrasting Cheniere Energy Partners (CQP) and Its Competitors

Cheniere Energy Partners (NYSE: CQP) is one of 16 public companies in the “Natural gas distribution” industry, but how does it compare to its rivals? We will compare Cheniere Energy Partners to related companies based on the strength of its earnings, institutional ownership, analyst recommendations, profitability, risk, dividends and valuation.

Profitability

This table compares Cheniere Energy Partners and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cheniere Energy Partners 21.29% 191.18% 7.50%
Cheniere Energy Partners Competitors 5.08% 32.74% 3.31%

Valuation & Earnings

This table compares Cheniere Energy Partners and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cheniere Energy Partners $6.84 billion $1.18 billion 15.94
Cheniere Energy Partners Competitors $8.61 billion $393.19 million 3.91

Cheniere Energy Partners’ rivals have higher revenue, but lower earnings than Cheniere Energy Partners. Cheniere Energy Partners is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

Cheniere Energy Partners has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, Cheniere Energy Partners’ rivals have a beta of 0.86, indicating that their average stock price is 14% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Cheniere Energy Partners and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cheniere Energy Partners 0 0 0 0 N/A
Cheniere Energy Partners Competitors 237 563 453 15 2.19

As a group, “Natural gas distribution” companies have a potential upside of 13.31%. Given Cheniere Energy Partners’ rivals higher probable upside, analysts clearly believe Cheniere Energy Partners has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

46.6% of Cheniere Energy Partners shares are owned by institutional investors. Comparatively, 74.1% of shares of all “Natural gas distribution” companies are owned by institutional investors. 10.2% of shares of all “Natural gas distribution” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Cheniere Energy Partners pays an annual dividend of $2.58 per share and has a dividend yield of 7.2%. Cheniere Energy Partners pays out 114.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Natural gas distribution” companies pay a dividend yield of 3.6% and pay out 76.9% of their earnings in the form of a dividend. Cheniere Energy Partners has increased its dividend for 3 consecutive years.

Summary

Cheniere Energy Partners beats its rivals on 7 of the 12 factors compared.

About Cheniere Energy Partners

Cheniere Energy Partners, L.P., through its subsidiaries, owns and operates regasification facilities at the Sabine Pass liquefied natural gas (LNG) terminal located in Cameron Parish, Louisiana on the Sabine-Neches Waterway. The company's regasification facilities include infrastructure of five LNG storage tanks with capacity of approximately 17 billion cubic feet equivalent; two marine berths that accommodate vessels of up to 266,000 cubic meters; and vaporizers with regasification capacity of approximately 4.0 billion cubic feet per day. It also owns the Creole Trail Pipeline, a 94-mile pipeline interconnecting the Sabine Pass LNG terminal with various interstate pipelines. Cheniere Energy Partners GP, LLC serves as the general partner of the company. Cheniere Energy Partners, L.P. was founded in 2003 and is headquartered in Houston, Texas.

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