Analyzing Cheniere Energy Partners (CQP) and Its Competitors

Cheniere Energy Partners (NYSE:CQP) is one of 23 public companies in the “Natural gas distribution” industry, but how does it contrast to its competitors? We will compare Cheniere Energy Partners to similar companies based on the strength of its dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.

Volatility and Risk

Cheniere Energy Partners has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Cheniere Energy Partners’ competitors have a beta of 0.86, indicating that their average share price is 14% less volatile than the S&P 500.

Earnings & Valuation

This table compares Cheniere Energy Partners and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Cheniere Energy Partners	$8.93 billion	$4.25 billion	11.65
Cheniere Energy Partners Competitors	$15.01 billion	$1.14 billion	18.95

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

Dividends

Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 5.7%. Cheniere Energy Partners pays out 67.0% of its earnings in the form of a dividend. As a group, “Natural gas distribution” companies pay a dividend yield of 2.8% and pay out 48.2% of their earnings in the form of a dividend.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheniere Energy Partners	2	0	0	0	1.00
Cheniere Energy Partners Competitors	427	1043	877	36	2.22

Cheniere Energy Partners currently has a consensus price target of $50.50, indicating a potential downside of 6.38%. As a group, “Natural gas distribution” companies have a potential upside of 6.95%. Given Cheniere Energy Partners’ competitors stronger consensus rating and higher possible upside, analysts plainly believe Cheniere Energy Partners has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

46.5% of Cheniere Energy Partners shares are held by institutional investors. Comparatively, 58.2% of shares of all “Natural gas distribution” companies are held by institutional investors. 14.1% of shares of all “Natural gas distribution” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cheniere Energy Partners	31.28%	-328.60%	13.93%
Cheniere Energy Partners Competitors	1.82%	-15.64%	0.53%

Summary

Cheniere Energy Partners competitors beat Cheniere Energy Partners on 11 of the 15 factors compared.

Cheniere Energy Partners Company Profile

Cheniere Energy Partners, L.P., through its subsidiaries, provides liquefied natural gas (LNG) to integrated energy companies, utilities, and energy trading companies worldwide. The company owns and operates natural gas liquefaction and export facility at the Sabine Pass LNG Terminal located in Cameron Parish, Louisiana. It also owns a natural gas supply pipeline that interconnects the Sabine Pass LNG terminal with various interstate pipelines. The company was founded in 2003 and is headquartered in Houston, Texas. Cheniere Energy Partners, L.P. is a subsidiary of Cheniere Energy, Inc.