Financial Comparison: Cheniere Energy (NYSE:LNG) versus EOG Resources (NYSE:EOG)

Cheniere Energy (NYSE:LNG) and EOG Resources (NYSE:EOG) are both large-cap energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, risk, earnings, profitability, valuation, dividends and institutional ownership.

Earnings and Valuation

This table compares Cheniere Energy and EOG Resources”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheniere Energy	$19.98 billion	2.52	$5.33 billion	$6.08	39.58
EOG Resources	$23.50 billion	3.19	$4.98 billion	$10.16	13.86

Cheniere Energy has higher earnings, but lower revenue than EOG Resources. EOG Resources is trading at a lower price-to-earnings ratio than Cheniere Energy, indicating that it is currently the more affordable of the two stocks.

Dividends

Cheniere Energy pays an annual dividend of $2.22 per share and has a dividend yield of 0.9%. EOG Resources pays an annual dividend of $4.08 per share and has a dividend yield of 2.9%. Cheniere Energy pays out 36.5% of its earnings in the form of a dividend. EOG Resources pays out 40.2% 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. EOG Resources has increased its dividend for 8 consecutive years. EOG Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Cheniere Energy and EOG Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cheniere Energy	7.23%	38.95%	9.34%
EOG Resources	23.01%	19.25%	11.37%

Analyst Ratings

This is a summary of current ratings and target prices for Cheniere Energy and EOG Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheniere Energy	0	2	16	2	3.00
EOG Resources	0	16	13	1	2.50

Cheniere Energy presently has a consensus price target of $298.63, indicating a potential upside of 24.09%. EOG Resources has a consensus price target of $156.32, indicating a potential upside of 11.03%. Given Cheniere Energy’s stronger consensus rating and higher probable upside, equities analysts plainly believe Cheniere Energy is more favorable than EOG Resources.

Insider & Institutional Ownership

87.3% of Cheniere Energy shares are owned by institutional investors. Comparatively, 89.9% of EOG Resources shares are owned by institutional investors. 0.6% of Cheniere Energy shares are owned by insiders. Comparatively, 0.1% of EOG Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Cheniere Energy beats EOG Resources on 9 of the 17 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 EOG Resources

EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, natural gas liquids, and natural gas primarily in producing basins in the United States, the Republic of Trinidad and Tobago and internationally. The company was formerly known as Enron Oil & Gas Company. EOG Resources, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.