National Fuel Gas (NYSE:NFG – Get Free Report) and Cheniere Energy Partners (NYSE:CQP – Get Free Report) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.
Dividends
National Fuel Gas pays an annual dividend of $2.06 per share and has a dividend yield of 2.8%. Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 5.1%. National Fuel Gas pays out -1,471.3% 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. National Fuel Gas has raised its dividend for 55 consecutive years.
Valuation & Earnings
This table compares National Fuel Gas and Cheniere Energy Partners”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| National Fuel Gas | $1.94 billion | 3.41 | $77.51 million | ($0.14) | -523.79 |
| Cheniere Energy Partners | $9.66 billion | 3.07 | $4.25 billion | $4.63 | 13.25 |
Analyst Recommendations
This is a summary 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 | 1 | 1 | 1 | 2.50 |
| Cheniere Energy Partners | 3 | 0 | 0 | 0 | 1.00 |
National Fuel Gas currently has a consensus price target of $69.00, indicating a potential downside of 5.91%. Cheniere Energy Partners has a consensus price target of $51.67, indicating a potential downside of 15.75%. Given National Fuel Gas’ stronger consensus rating and higher probable upside, analysts plainly believe National Fuel Gas is more favorable than Cheniere Energy Partners.
Institutional & Insider Ownership
74.0% of National Fuel Gas shares are owned by institutional investors. Comparatively, 46.6% of Cheniere Energy Partners shares are owned by institutional investors. 1.4% of National Fuel Gas shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
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 | -0.53% | 15.96% | 5.68% |
| Cheniere Energy Partners | 31.28% | -328.60% | 13.93% |
Risk and Volatility
National Fuel Gas has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Cheniere Energy Partners has a beta of 0.76, meaning that its share price is 24% 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 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.
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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