Critical Comparison: Dorian LPG (NYSE:LPG) versus Cheniere Energy Partners (NYSE:CQP)

Dorian LPG (NYSE:LPG) and Cheniere Energy Partners (NYSE:CQP) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Volatility & Risk

Dorian LPG has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Cheniere Energy Partners has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dorian LPG	55.00%	25.69%	15.87%
Cheniere Energy Partners	27.31%	1,121.60%	14.59%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Dorian LPG and Cheniere Energy Partners, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dorian LPG	0	1	3	1	3.00
Cheniere Energy Partners	5	3	1	0	1.56

Dorian LPG currently has a consensus price target of $55.00, suggesting a potential upside of 4.85%. Cheniere Energy Partners has a consensus price target of $62.00, suggesting a potential downside of 2.11%. Given Dorian LPG’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Dorian LPG is more favorable than Cheniere Energy Partners.

Valuation and Earnings

This table compares Dorian LPG and Cheniere Energy Partners”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dorian LPG	$481.51 million	4.66	$193.67 million	$7.55	6.95
Cheniere Energy Partners	$10.76 billion	2.85	$2.99 billion	$5.51	11.49

Cheniere Energy Partners has higher revenue and earnings than Dorian LPG. Dorian LPG 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.

Insider and Institutional Ownership

62.5% of Dorian LPG shares are owned by institutional investors. Comparatively, 46.5% of Cheniere Energy Partners shares are owned by institutional investors. 13.5% of Dorian LPG shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Dorian LPG beats Cheniere Energy Partners on 11 of the 15 factors compared between the two stocks.

About Dorian LPG

Dorian LPG Ltd., together with its subsidiaries, engages in the transportation of liquefied petroleum gas through its LPG tankers worldwide. It owns and operates twenty-five very large gas carriers. The company was incorporated in 2013 and is headquartered in Stamford, Connecticut.

About Cheniere Energy Partners

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.