Cheniere Energy Partners (NYSEAMERICAN:CQP) and New Fortress Energy (NASDAQ:NFE) are both oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.
Dividends
Cheniere Energy Partners pays an annual dividend of $2.62 per share and has a dividend yield of 6.3%. New Fortress Energy pays an annual dividend of $0.40 per share and has a dividend yield of 0.9%. Cheniere Energy Partners pays out 116.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. New Fortress Energy pays out -24.7% of its earnings in the form of a dividend. Cheniere Energy Partners has increased its dividend for 4 consecutive years and New Fortress Energy has increased its dividend for 1 consecutive years. Cheniere Energy Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Cheniere Energy Partners and New Fortress Energy's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Cheniere Energy Partners | 20.10% | 174.29% | 6.59% |
| New Fortress Energy | -50.42% | -17.68% | -3.09% |
Institutional and Insider Ownership
46.6% of Cheniere Energy Partners shares are held by institutional investors. Comparatively, 38.5% of New Fortress Energy shares are held by institutional investors. 89.6% of New Fortress Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Cheniere Energy Partners and New Fortress Energy's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Cheniere Energy Partners | $6.84 billion | 2.95 | $1.18 billion | $2.25 | 18.52 |
| New Fortress Energy | $189.13 million | 41.54 | $-33,810,000.00 | ($1.62) | -27.56 |
Cheniere Energy Partners has higher revenue and earnings than New Fortress Energy. New Fortress Energy is trading at a lower price-to-earnings ratio than Cheniere Energy Partners, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Cheniere Energy Partners and New Fortress Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Cheniere Energy Partners | 3 | 7 | 1 | 0 | 1.82 |
| New Fortress Energy | 0 | 3 | 8 | 0 | 2.73 |
Cheniere Energy Partners currently has a consensus target price of $37.0625, indicating a potential downside of 11.08%. New Fortress Energy has a consensus target price of $43.1538, indicating a potential downside of 3.35%. Given New Fortress Energy's stronger consensus rating and higher possible upside, analysts clearly believe New Fortress Energy is more favorable than Cheniere Energy Partners.
Risk & Volatility
Cheniere Energy Partners has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, New Fortress Energy has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500.
Summary
Cheniere Energy Partners beats New Fortress Energy on 10 of the 17 factors compared between the two stocks.
