Cheniere Energy (NYSE:LNG – Get Free Report) and Peabody Energy (NYSE:BTU – Get Free Report) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.
Dividends
Cheniere Energy pays an annual dividend of $2.22 per share and has a dividend yield of 0.8%. Peabody Energy pays an annual dividend of $0.30 per share and has a dividend yield of 1.2%. Cheniere Energy pays out 16.5% of its earnings in the form of a dividend. Peabody Energy pays out -20.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Peabody Energy has increased its dividend for 1 consecutive years. Peabody Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
This is a summary of current ratings for Cheniere Energy and Peabody Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cheniere Energy | 0 | 3 | 15 | 2 | 2.95 |
| Peabody Energy | 1 | 3 | 2 | 0 | 2.17 |
Profitability
This table compares Cheniere Energy and Peabody Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cheniere Energy | 13.57% | 29.80% | 7.05% |
| Peabody Energy | -4.56% | -5.22% | -3.22% |
Volatility & Risk
Cheniere Energy has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500. Comparatively, Peabody Energy has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500.
Valuation & Earnings
This table compares Cheniere Energy and Peabody Energy”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cheniere Energy | $19.98 billion | 2.87 | $5.33 billion | $13.43 | 20.67 |
| Peabody Energy | $3.86 billion | 0.79 | -$52.90 million | ($1.50) | -16.71 |
Cheniere Energy has higher revenue and earnings than Peabody Energy. Peabody Energy is trading at a lower price-to-earnings ratio than Cheniere Energy, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
87.3% of Cheniere Energy shares are held by institutional investors. Comparatively, 87.4% of Peabody Energy shares are held by institutional investors. 0.6% of Cheniere Energy shares are held by company insiders. Comparatively, 0.5% of Peabody Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Cheniere Energy beats Peabody Energy on 12 of the 18 factors compared between the two stocks.
About Cheniere Energy
Cheniere Energy, Inc., an energy infrastructure company, primarily engages in the liquefied natural gas (LNG) related businesses in the United States. It owns and operates the Sabine Pass LNG terminal in Cameron Parish, Louisiana; and the Corpus Christi LNG terminal near Corpus Christi, Texas. The company also owns Creole Trail pipeline, a 94-mile natural gas supply pipeline that interconnects the Sabine Pass LNG Terminal with several interstate and intrastate pipelines; and operates Corpus Christi pipeline, a 21.5-mile natural gas supply pipeline that interconnects the Corpus Christi LNG terminal with various interstate and intrastate natural gas pipelines. It is also involved in the LNG and natural gas marketing business. The company was incorporated in 1983 and is headquartered in Houston, Texas.
About Peabody Energy
Peabody Energy Corporation engages in coal mining business in the United States, Japan, Taiwan, Australia, India, Brazil, Belgium, Chile, France, Indonesia, China, Vietnam, South Korea, Germany, and internationally. The company operates through Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other U.S. Thermal, and Corporate and Other segments. It is involved in the mining, preparation, and sale of thermal coal primarily to electric utilities; mining bituminous and sub-bituminous coal deposits; low sulfur and high British thermal unit thermal coal; and mining metallurgical coal, such as hard coking coal, semi-hard coking coal, semi-soft coking coal, and pulverized coal injection coal. The company supplies coal primarily to electricity generators, industrial facilities, and steel manufacturers. It also engages in marketing and brokering of coal from other coal producers; trading of coal and freight-related contracts, as well as provides transportation-related services. The company was founded in 1883 and is headquartered in Saint Louis, Missouri.
Receive News & Ratings for Cheniere Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cheniere Energy and related companies with MarketBeat.com's FREE daily email newsletter.
