TC Energy (NYSE:TRP) versus Cheniere Energy Partners (NYSE:CQP) Head-To-Head Comparison

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

Risk and Volatility

Cheniere Energy Partners has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500. Comparatively, TC Energy has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Insider & Institutional Ownership

46.5% of Cheniere Energy Partners shares are owned by institutional investors. Comparatively, 83.1% of TC Energy shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Cheniere Energy Partners and TC Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheniere Energy Partners	$11.50 billion	2.69	$2.99 billion	$5.51	11.59
TC Energy	$15.69 billion	3.93	$2.52 billion	$2.41	25.56

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cheniere Energy Partners	27.31%	1,121.60%	14.59%
TC Energy	22.91%	11.10%	3.21%

Analyst Ratings

This is a summary of recent recommendations for Cheniere Energy Partners and TC Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheniere Energy Partners	5	3	1	0	1.56
TC Energy	0	3	12	1	2.88

Cheniere Energy Partners presently has a consensus price target of $62.00, suggesting a potential downside of 2.89%. TC Energy has a consensus price target of $92.00, suggesting a potential upside of 49.37%. Given TC Energy’s stronger consensus rating and higher probable upside, analysts plainly believe TC Energy is more favorable than Cheniere Energy Partners.

Dividends

Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 4.9%. TC Energy pays an annual dividend of $2.53 per share and has a dividend yield of 4.1%. Cheniere Energy Partners pays out 56.3% of its earnings in the form of a dividend. TC Energy pays out 105.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TC Energy has increased its dividend for 1 consecutive years. Cheniere Energy Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

TC Energy beats Cheniere Energy Partners on 10 of the 17 factors compared between the two stocks.

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.

About TC Energy

TC Energy Corporation operates as an energy infrastructure company in North America. It operates through five segments: Canadian Natural Gas Pipelines; U.S. Natural Gas Pipelines; Mexico Natural Gas Pipelines; Liquids Pipelines; and Power and Energy Solutions. The company builds and operates a network of 93,600 kilometers of natural gas pipelines, which transports natural gas from supply basins to local distribution companies, power generation plants, industrial facilities, interconnecting pipelines, LNG export terminals, and other businesses. It also has regulated natural gas storage facilities with a total working gas capacity of 532 billion cubic feet. In addition, it has approximately 4,900 kilometers of liquids pipeline system that connects Alberta crude oil pipeline to refining markets in Illinois, Oklahoma, Texas, and the United States Gulf Coast. Further, the company owns or has interests in power generation facilities with approximately 4,600 megawatts; and owns and operates approximately 118 billion cubic feet of non-regulated natural gas storage facilities in in Alberta, Ontario, Québec, and New Brunswick. The company was formerly known as TransCanada Corporation and changed its name to TC Energy Corporation in May 2019. TC Energy Corporation was founded in 1951 and is headquartered in Calgary, Canada.