Head-To-Head Comparison: Cheniere Energy Partners (CQP) versus Its Competitors

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

Institutional and Insider Ownership

46.6% of Cheniere Energy Partners shares are held by institutional investors. Comparatively, 74.1% of shares of all “Natural gas distribution” companies are held by institutional investors. 10.2% of shares of all “Natural gas distribution” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

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’ peers have a beta of 0.86, indicating that their average stock price is 14% less volatile than the S&P 500.

Valuation and Earnings

This table compares Cheniere Energy Partners and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cheniere Energy Partners $6.84 billion $1.18 billion 16.09
Cheniere Energy Partners Competitors $8.61 billion $393.19 million 3.83

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Cheniere Energy Partners and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cheniere Energy Partners 0 0 0 0 N/A
Cheniere Energy Partners Competitors 237 562 452 15 2.19

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

Dividends

Cheniere Energy Partners pays an annual dividend of $2.58 per share and has a dividend yield of 7.1%. 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 raised its dividend for 3 consecutive years.

Profitability

This table compares Cheniere Energy Partners and its peers’ 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%

Summary

Cheniere Energy Partners beats its peers 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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