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

Profitability

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

Net Margins Return on Equity Return on Assets
Golar LNG Partners 40.50% 28.97% 7.83%
Cheniere Energy 1.69% N/A 0.32%

Dividends

Golar LNG Partners pays an annual dividend of $2.31 per share and has a dividend yield of 11.2%. Cheniere Energy does not pay a dividend. Golar LNG Partners pays out 82.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares Golar LNG Partners and Cheniere Energy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Golar LNG Partners $441.92 million 3.30 $366.28 million $2.81 7.35
Cheniere Energy $3.48 billion 2.77 $1.11 billion N/A N/A

Cheniere Energy has higher revenue and earnings than Golar LNG Partners.

Institutional and Insider Ownership

77.0% of Golar LNG Partners shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Golar LNG Partners 0 3 1 0 2.25
Cheniere Energy 0 1 5 0 2.83

Golar LNG Partners currently has a consensus price target of $23.25, indicating a potential upside of 12.65%. Cheniere Energy has a consensus price target of $53.76, indicating a potential upside of 29.53%. Given Cheniere Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Cheniere Energy is more favorable than Golar LNG Partners.

Golar LNG Partners Company Profile

Golar LNG Partners LP owns and operates floating storage regasification units (FSRUs) and liquefied natural gas (LNG) carriers under long-term time charters. The Company operates through the LNG market segment. The Company’s fleet consists of approximately six FSRUs and over four LNG carriers. The Company’s FSRU vessels include Golar Spirit, Golar Winter, Golar Freeze, NR Satu, Golar Igloo and Golar Eskimo. Its FSRU vessels have a total capacity of approximately 846,000 cubic meters. The Company’s LNG carriers include Golar Mazo, Methane Princess, Golar Grand and Golar Maria. Its LNG carriers have a total capacity of over 564,400 cubic meters.

Cheniere Energy Company Profile

Cheniere Energy, Inc. (Cheniere) is an energy company primarily engaged in liquefied natural gas (LNG)-related businesses. The Company operates through two segments: LNG terminal business, and LNG and natural gas marketing business. Its LNG terminal segment consists of the Sabine Pass and Corpus Christi LNG terminals. Its LNG and natural gas marketing segment consists of LNG and natural gas marketing activities by Cheniere Marketing. Cheniere Marketing is developing a portfolio of long- and medium-term SPAs with professional staff based in the United States, the United Kingdom, Singapore and Chile. The Company conducts its business through its subsidiaries, including the development, construction and operation of its LNG terminal business and the development and operation of its LNG and natural gas marketing business. The Company owns and operates the Sabine Pass LNG terminal in Louisiana through its ownership interest in and management agreements with Cheniere Partners.

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