Head-To-Head Survey: National Fuel Gas (NYSE:NFG) versus Cheniere Energy Partners (NYSE:CQP)

Cheniere Energy Partners (NYSE:CQP) and National Fuel Gas (NYSE:NFG) are both oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.

Insider and Institutional Ownership

46.6% of Cheniere Energy Partners shares are held by institutional investors. Comparatively, 74.0% of National Fuel Gas shares are held by institutional investors. 1.4% of National Fuel Gas shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Cheniere Energy Partners and National Fuel Gas”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheniere Energy Partners	$9.66 billion	3.09	$4.25 billion	$4.63	13.31
National Fuel Gas	$1.94 billion	3.36	$77.51 million	($0.14)	-515.47

Cheniere Energy Partners has higher revenue and earnings than National Fuel Gas. National Fuel Gas 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 current recommendations for Cheniere Energy Partners and National Fuel Gas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheniere Energy Partners	3	0	0	0	1.00
National Fuel Gas	1	1	1	1	2.50

Cheniere Energy Partners currently has a consensus price target of $51.67, suggesting a potential downside of 16.15%. National Fuel Gas has a consensus price target of $69.00, suggesting a potential downside of 4.39%. Given National Fuel Gas’ stronger consensus rating and higher probable upside, analysts plainly believe National Fuel Gas is more favorable than Cheniere Energy Partners.

Profitability

This table compares Cheniere Energy Partners and National Fuel Gas’ 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%
National Fuel Gas	-0.53%	15.96%	5.68%

Dividends

Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 5.0%. National Fuel Gas pays an annual dividend of $2.06 per share and has a dividend yield of 2.9%. Cheniere Energy Partners pays out 67.0% of its earnings in the form of a dividend. National Fuel Gas pays out -1,471.3% 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. National Fuel Gas has increased its dividend for 55 consecutive years.

Risk & Volatility

Cheniere Energy Partners has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, National Fuel Gas has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.

Summary

National Fuel Gas beats Cheniere Energy Partners on 10 of the 18 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 National Fuel Gas

National Fuel Gas Company operates as a diversified energy company. It operates through four segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. The Exploration and Production segment explores for, develops, and produces natural gas and oil. The Pipeline and Storage segment provides interstate natural gas transportation services through an integrated gas pipeline system in Pennsylvania and New York; and owns and operates underground natural gas storage fields. This segment also transports natural gas for National Fuel Gas Distribution Corporation, as well as for other utilities, industrial companies, and power producers in New York State. The Gathering segment builds, owns, and operates natural gas processing and pipeline gathering facilities in the Appalachian region, as well as provides gathering services to Seneca. The Utility segment sells natural gas or provides natural gas utility services to various customers in Buffalo, Niagara Falls, and Jamestown, New York; and Erie and Sharon, Pennsylvania. National Fuel Gas Company was incorporated in 1902 and is headquartered in Williamsville, New York.