Analyzing New Fortress Energy (NASDAQ:NFE) & Cheniere Energy Partners (NYSE:CQP)

Cheniere Energy Partners (NYSE:CQP) and New Fortress Energy (NASDAQ:NFE) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Insider and Institutional Ownership

46.5% of Cheniere Energy Partners shares are owned by institutional investors. Comparatively, 58.6% of New Fortress Energy shares are owned by institutional investors. 37.1% of New Fortress Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Cheniere Energy Partners has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, New Fortress Energy has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500.

Valuation & Earnings

This table compares Cheniere Energy Partners and New Fortress Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheniere Energy Partners	$8.93 billion	2.90	$4.25 billion	$4.63	11.55
New Fortress Energy	$2.44 billion	1.49	$547.88 million	$0.91	15.95

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

Profitability

This table compares Cheniere Energy Partners and New Fortress 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%
New Fortress Energy	7.84%	15.60%	2.42%

Analyst Recommendations

This is a breakdown of current ratings for Cheniere Energy Partners and New Fortress 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
New Fortress Energy	0	3	2	0	2.40

Cheniere Energy Partners currently has a consensus target price of $50.50, indicating a potential downside of 5.59%. New Fortress Energy has a consensus target price of $15.40, indicating a potential upside of 6.13%. Given New Fortress Energy’s stronger consensus rating and higher possible upside, analysts clearly believe New Fortress Energy is more favorable than Cheniere Energy Partners.

Dividends

Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 5.8%. New Fortress Energy pays an annual dividend of $0.20 per share and has a dividend yield of 1.4%. Cheniere Energy Partners pays out 67.0% of its earnings in the form of a dividend. New Fortress Energy pays out 22.0% 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.

Summary

New Fortress 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 New Fortress Energy

New Fortress Energy Inc. operates as an integrated gas-to-power energy infrastructure company that provides energy and development services to end-users worldwide. The company operates in two segments, Terminals and Infrastructure, and Ships. The Terminals and Infrastructure segment engages in the natural gas procurement and liquefaction; and shipping, logistics, facilities and conversion, or development of natural gas-fired power generation. The Ships segment offers floating storage and regasification units (FRSU) and liquefied natural gas (LNG) carriers which are leased to customers under long-term or spot arrangements. The company operates LNG storage and regasification facility at the Port of Montego Bay, Jamaica; marine LNG storage and regasification facility in Old Harbour, Jamaica; Dual-fired combined heat and power facility in Clarendon, Jamaica; landed micro-fuel handling facility in San Juan, Puerto Rico; and LNG receiving facility and gas-fired power plant in Baja Califrnia Sur, Mexico, as well as a Miami facility. New Fortress Energy Inc. was founded in 1998 and is based in New York, New York.