New Jersey Resources (NYSE:NJR – Get Free Report) and Cheniere Energy Partners (NYSE:CQP – Get Free Report) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.
Earnings & Valuation
This table compares New Jersey Resources and Cheniere Energy Partners”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Jersey Resources | $1.80 billion | 2.59 | $289.77 million | $2.92 | 16.00 |
| Cheniere Energy Partners | $8.93 billion | 2.90 | $4.25 billion | $4.63 | 11.55 |
Cheniere Energy Partners has higher revenue and earnings than New Jersey Resources. Cheniere Energy Partners is trading at a lower price-to-earnings ratio than New Jersey Resources, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Profitability
This table compares New Jersey Resources and Cheniere Energy Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Jersey Resources | 16.13% | 13.54% | 4.28% |
| Cheniere Energy Partners | 31.28% | -328.60% | 13.93% |
Analyst Ratings
This is a breakdown of current ratings and price targets for New Jersey Resources and Cheniere Energy Partners, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Jersey Resources | 0 | 3 | 1 | 1 | 2.60 |
| Cheniere Energy Partners | 2 | 0 | 0 | 0 | 1.00 |
New Jersey Resources presently has a consensus price target of $51.00, suggesting a potential upside of 9.18%. Cheniere Energy Partners has a consensus price target of $50.50, suggesting a potential downside of 5.59%. Given New Jersey Resources’ stronger consensus rating and higher possible upside, analysts clearly believe New Jersey Resources is more favorable than Cheniere Energy Partners.
Dividends
New Jersey Resources pays an annual dividend of $1.80 per share and has a dividend yield of 3.9%. Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 5.8%. New Jersey Resources pays out 61.6% of its earnings in the form of a dividend. Cheniere Energy Partners pays out 67.0% 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. New Jersey Resources has raised its dividend for 29 consecutive years.
Institutional and Insider Ownership
71.0% of New Jersey Resources shares are held by institutional investors. Comparatively, 46.5% of Cheniere Energy Partners shares are held by institutional investors. 0.7% of New Jersey Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
New Jersey Resources beats Cheniere Energy Partners on 10 of the 18 factors compared between the two stocks.
About New Jersey Resources
New Jersey Resources Corporation, an energy services holding company, distributes natural gas. The company operates through four segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services, and Storage and Transportation. The Natural Gas Distribution segment offers regulated natural gas utility services to approximately 576,000 customers in Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey; provides capacity and storage management services; and participates in the off-system sales and capacity release markets. The Clean Energy Ventures segment invests in, owns, and operates clean energy projects, including commercial and residential solar installation situated in New Jersey, Rhode Island, New York, Connecticut, Michigan, and Indiana. The Energy Services segment maintains and operates natural gas transportation and storage capacity contracts, as well as provides physical wholesale energy, retail energy and energy management services in the United States and Canada. The Storage and Transportation segment invests in invests in energy-related ventures. It provides heating, ventilation, and cooling services; sales and installation of appliances; offers solar equipment installation, and plumbing repair and installation services; and holds commercial real estate properties. The company was incorporated in 1981 and is headquartered in Wall, New Jersey.
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.
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