Head to Head Contrast: Cheniere Energy Partners (NYSE:CQP) & Ultrapar Participações (NYSE:UGP)

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

Dividends

Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 5.0%. Ultrapar Participações pays an annual dividend of $0.13 per share and has a dividend yield of 4.6%. Cheniere Energy Partners pays out 72.8% of its earnings in the form of a dividend. Ultrapar Participações pays out 33.3% 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.

Risk & Volatility

Cheniere Energy Partners has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, Ultrapar Participações has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Cheniere Energy Partners and Ultrapar Participações, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheniere Energy Partners	4	0	0	0	1.00
Ultrapar Participações	0	2	4	1	2.86

Cheniere Energy Partners presently has a consensus target price of $51.50, suggesting a potential downside of 16.44%. Ultrapar Participações has a consensus target price of $3.20, suggesting a potential upside of 14.08%. Given Ultrapar Participações’ stronger consensus rating and higher probable upside, analysts clearly believe Ultrapar Participações is more favorable than Cheniere Energy Partners.

Valuation & Earnings

This table compares Cheniere Energy Partners and Ultrapar Participações”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheniere Energy Partners	$8.70 billion	3.43	$4.25 billion	$4.26	14.47
Ultrapar Participações	$133.50 billion	0.02	$488.69 million	$0.39	7.19

Cheniere Energy Partners has higher earnings, but lower revenue than Ultrapar Participações. Ultrapar Participações 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cheniere Energy Partners	28.84%	-325.95%	13.71%
Ultrapar Participações	2.00%	18.03%	6.93%

Insider & Institutional Ownership

46.5% of Cheniere Energy Partners shares are held by institutional investors. Comparatively, 3.6% of Ultrapar Participações shares are held by institutional investors. 1.8% of Ultrapar Participações shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Ultrapar Participações beats Cheniere Energy Partners on 9 of the 17 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 Ultrapar Participações

Ultrapar Participações S.A., through its subsidiaries, operates in the energy and infrastructure business in Brazil. The company distributes liquefied petroleum gas to residential, commercial, and industrial consumers, in addition to renewable electricity and compressed natural gas. It also operates in the distribution and marketing of gasoline, ethanol, diesel, fuel oil, kerosene, natural gas for vehicles, and lubricants; and holds AmPm convenience stores and provides JetOil lubricant services. In addition, the company operates liquid bulk storage terminals. Further, it offers digital payments services, combining the abastece aí app and the loyalty program Km de Vantagens. It also exports its products and services to customers in Europe, Singapore, the United States, Canada, other Latin American countries, and internationally. The company was founded in 1937 and is headquartered in São Paulo, Brazil.