National Fuel Gas (NYSE:NFG – Get Rating) and Cheniere Energy Partners (NYSE:CQP – Get Rating) are both utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.
Volatility & Risk
National Fuel Gas has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Cheniere Energy Partners has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.
National Fuel Gas pays an annual dividend of $1.82 per share and has a dividend yield of 2.4%. Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 5.7%. National Fuel Gas pays out 35.3% of its earnings in the form of a dividend. Cheniere Energy Partners pays out 138.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Fuel Gas has increased its dividend for 52 consecutive years and Cheniere Energy Partners has increased its dividend for 6 consecutive years.
Earnings and Valuation
This table compares National Fuel Gas and Cheniere Energy Partners’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|National Fuel Gas||$1.74 billion||3.93||$363.65 million||$5.15||14.53|
|Cheniere Energy Partners||$9.43 billion||2.79||$1.63 billion||$2.24||24.28|
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.
This is a breakdown of current recommendations and price targets for National Fuel Gas and Cheniere Energy Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National Fuel Gas||1||0||1||0||2.00|
|Cheniere Energy Partners||1||0||0||0||1.00|
National Fuel Gas presently has a consensus price target of $71.00, indicating a potential downside of 5.14%. Cheniere Energy Partners has a consensus price target of $55.00, indicating a potential upside of 1.12%. Given Cheniere Energy Partners’ higher probable upside, analysts plainly believe Cheniere Energy Partners is more favorable than National Fuel Gas.
Insider & Institutional Ownership
73.5% of National Fuel Gas shares are held by institutional investors. Comparatively, 46.2% of Cheniere Energy Partners shares are held by institutional investors. 1.9% of National Fuel Gas shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares National Fuel Gas and Cheniere Energy Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|National Fuel Gas||23.67%||23.85%||6.16%|
|Cheniere Energy Partners||13.35%||-2,100.73%||9.47%|
National Fuel Gas beats Cheniere Energy Partners on 10 of the 17 factors compared between the two stocks.
About National Fuel Gas (Get Rating)
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 in California and in the Appalachian region of the United States. As of September 30, 2021, it had proved developed and undeveloped reserves of 21,537 thousand barrels of oil and 3,723,433 million cubic feet of natural gas. The Pipeline and Storage segment provides interstate natural gas transportation and storage 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; and owns and operates the Empire Pipeline. 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 Resources Company, LLC. The Utility segment sells natural gas or provides natural gas transportation services to approximately 753,000 customers in Buffalo, Niagara Falls, and Jamestown, New York; and Erie and Sharon, Pennsylvania. The company markets gas to industrial, wholesale, commercial, public authority, and residential customers primarily in western and central New York, and northwestern Pennsylvania. As of September 30, 2021, the company also owned approximately 95,000 acres of timber property; and managed approximately 2,500 additional acres of timber cutting rights. National Fuel Gas Company was incorporated in 1902 and is headquartered in Williamsville, New York.
About Cheniere Energy Partners (Get Rating)
Cheniere Energy Partners, L.P., through its subsidiaries, owns and operates natural gas liquefaction and export facility at the Sabine Pass liquefied natural gas (LNG) terminal located in Cameron Parish, Louisiana. The company's regasification facilities include five LNG storage tanks with an aggregate capacity of approximately 17 billion cubic feet equivalent; two marine berths that accommodate vessels with capacity of up to 266,000 cubic meters; and vaporizers with regasification capacity of approximately 4 billion cubic feet per day. It also owns a 94-mile pipeline that interconnects the Sabine Pass LNG terminal with various interstate pipelines. Cheniere Energy Partners GP, LLC serves as the general partner of the company. The company was founded in 2003 and is headquartered in Houston, Texas.
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