Cheniere Energy Partners (NYSE: CQP) and Plains All American Pipeline, L.P. (NYSE:PAA) are both large-cap energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.
Plains All American Pipeline, L.P. pays an annual dividend of $2.20 per share and has a dividend yield of 10.0%. Cheniere Energy Partners does not pay a dividend. Plains All American Pipeline, L.P. pays out 165.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Cheniere Energy Partners and Plains All American Pipeline, L.P.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cheniere Energy Partners||4.64%||39.76%||1.08%|
|Plains All American Pipeline, L.P.||4.42%||10.14%||3.41%|
Earnings & Valuation
This table compares Cheniere Energy Partners and Plains All American Pipeline, L.P.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cheniere Energy Partners||$2.77 billion||4.78||$926.06 million||N/A||N/A|
|Plains All American Pipeline, L.P.||$23.87 billion||0.67||$2.01 billion||$1.33||16.58|
Plains All American Pipeline, L.P. has higher revenue and earnings than Cheniere Energy Partners.
Institutional & Insider Ownership
42.1% of Plains All American Pipeline, L.P. shares are held by institutional investors. 1.3% of Plains All American Pipeline, L.P. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of recent recommendations for Cheniere Energy Partners and Plains All American Pipeline, L.P., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cheniere Energy Partners||0||4||1||0||2.20|
|Plains All American Pipeline, L.P.||0||13||10||0||2.43|
Cheniere Energy Partners currently has a consensus target price of $35.00, indicating a potential upside of 27.92%. Plains All American Pipeline, L.P. has a consensus target price of $28.65, indicating a potential upside of 29.93%. Given Plains All American Pipeline, L.P.’s stronger consensus rating and higher probable upside, analysts plainly believe Plains All American Pipeline, L.P. is more favorable than Cheniere Energy Partners.
Plains All American Pipeline, L.P. beats Cheniere Energy Partners on 9 of the 14 factors compared between the two stocks.
About Cheniere Energy Partners
Cheniere Energy Partners, L.P. (Cheniere Partners) is a limited partnership formed by Cheniere Energy, Inc (Cheniere). The Company operates through liquefaction and regasification operations at the Sabine Pass LNG terminal segment. Through its subsidiary, Sabine Pass Liquefaction, LLC (SPL), it is developing, constructing and operating natural gas liquefaction facilities (the Liquefaction Project) at the Sabine Pass LNG terminal located in Cameron Parish, Louisiana, on the Sabine-Neches Waterway less than four miles from the Gulf Coast. Through its subsidiary, Sabine Pass LNG, L.P., it owns and operates regasification facilities at the Sabine Pass LNG terminal, which includes existing infrastructure of five LNG storage tanks with capacity of approximately 16.9 billion cubic feet equivalent, two marine berths that can accommodate vessels with nominal capacity of up to 266,000 cubic meters and vaporizers with regasification capacity of approximately four billion cubic feet per day.
About Plains All American Pipeline, L.P.
Plains All American Pipeline, L.P. owns and operates midstream energy infrastructure and provide logistics services for crude oil, natural gas liquids (NGL), natural gas and refined products. The Company operates through three segments: Transportation, Facilities, and Supply and Logistics. The Company’s transportation segment operations consist of activities associated with transporting crude oil and NGL on pipelines, gathering systems, trucks and barges. Its Facilities segment operations consist of activities associated with providing storage, terminaling and throughput services for crude oil, refined products, NGL and natural gas, as well as NGL fractionation and isomerization services and natural gas and condensate processing services. Its supply and logistics segment operations consist of the merchant-related activities, including the purchase of the United States and Canadian crude oil at the wellhead, the bulk purchase of crude oil at pipeline, terminal and rail facilities.
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