Cheniere Energy Partners (NYSE:CQP) & Atmos Energy (NYSE:ATO) Financial Analysis

Atmos Energy (NYSE:ATO) and Cheniere Energy Partners (NYSE:CQP) are both large-cap utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Atmos Energy	25.04%	8.83%	4.27%
Cheniere Energy Partners	31.28%	-328.60%	13.93%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atmos Energy	$4.17 billion	5.27	$1.04 billion	$6.87	20.58
Cheniere Energy Partners	$8.93 billion	2.96	$4.25 billion	$4.63	11.78

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

Analyst Recommendations

This is a summary of current recommendations for Atmos Energy and Cheniere Energy Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atmos Energy	0	3	6	0	2.67
Cheniere Energy Partners	1	0	0	0	1.00

Atmos Energy currently has a consensus price target of $148.61, suggesting a potential upside of 5.12%. Cheniere Energy Partners has a consensus price target of $46.00, suggesting a potential downside of 15.69%. Given Atmos Energy’s stronger consensus rating and higher probable upside, research analysts clearly believe Atmos Energy is more favorable than Cheniere Energy Partners.

Insider & Institutional Ownership

90.2% of Atmos Energy shares are owned by institutional investors. Comparatively, 46.5% of Cheniere Energy Partners shares are owned by institutional investors. 0.5% of Atmos Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Atmos Energy has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, Cheniere Energy Partners has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.

Dividends

Atmos Energy pays an annual dividend of $3.48 per share and has a dividend yield of 2.5%. Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 5.7%. Atmos Energy pays out 50.7% 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. Atmos Energy has increased its dividend for 41 consecutive years.

Summary

Atmos Energy beats Cheniere Energy Partners on 11 of the 17 factors compared between the two stocks.

About Atmos Energy

Atmos Energy Corporation, together with its subsidiaries, engages in the regulated natural gas distribution, and pipeline and storage businesses in the United States. It operates through two segments, Distribution, and Pipeline and Storage. The Distribution segment is involved in the regulated natural gas distribution and related sales operations in eight states. This segment distributes natural gas to approximately 3.3 million residential, commercial, public authority, and industrial customers; and owned 73,689 miles of underground distribution and transmission mains. The Pipeline and Storage segment engages in the pipeline and storage operations. This segment transports natural gas for third parties and manages five underground storage facilities in Texas; provides ancillary services customary to the pipeline industry, including parking arrangements, lending, and inventory sales; and owned 5,645 miles of gas transmission lines. Atmos Energy Corporation was founded in 1906 and is headquartered in Dallas, Texas.

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.