Analyzing Excelerate Energy (NYSE:EE) and Cheniere Energy Partners (NYSE:CQP)

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

Institutional & Insider Ownership

46.5% of Cheniere Energy Partners shares are owned by institutional investors. Comparatively, 21.8% of Excelerate Energy shares are owned by institutional investors. 1.7% of Excelerate Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Cheniere Energy Partners and Excelerate Energy’s 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%
Excelerate Energy	3.14%	1.39%	0.90%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Cheniere Energy Partners and Excelerate Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheniere Energy Partners	2	0	0	0	1.00
Excelerate Energy	2	1	4	0	2.29

Cheniere Energy Partners presently has a consensus target price of $50.50, suggesting a potential downside of 8.98%. Excelerate Energy has a consensus target price of $28.71, suggesting a potential downside of 2.93%. Given Excelerate Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Excelerate Energy is more favorable than Cheniere Energy Partners.

Earnings and Valuation

This table compares Cheniere Energy Partners and Excelerate Energy”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	$8.93 billion	3.01	$4.25 billion	$4.63	11.98
Excelerate Energy	$816.93 million	3.85	$30.41 million	$0.99	29.88

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

Risk and Volatility

Cheniere Energy Partners has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Excelerate Energy has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.

Dividends

Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 5.6%. Excelerate Energy pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Cheniere Energy Partners pays out 67.0% of its earnings in the form of a dividend. Excelerate Energy pays out 24.2% 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.

Summary

Excelerate Energy beats Cheniere Energy Partners on 9 of the 16 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 Excelerate Energy

Excelerate Energy, Inc. provides flexible liquefied natural gas (LNG) solutions worldwide. The company offers regasification services, including floating storage and regasification units (FSRUs), infrastructure development, and LNG and natural gas supply, procurement, and distribution services; LNG terminal services; and natural gas supply to-power projects. Excelerate Energy, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas. Excelerate Energy, Inc. is a subsidiary of Excelerate Energy Holdings, LLC.