Cheniere Energy (NYSE: LNG) is one of 15 public companies in the “LNG Transportation & Storage” industry, but how does it weigh in compared to its peers? We will compare Cheniere Energy to similar businesses based on the strength of its valuation, dividends, risk, analyst recommendations, earnings, profitability and institutional ownership.

Profitability

This table compares Cheniere Energy and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cheniere Energy 1.69% N/A 0.32%
Cheniere Energy Competitors 23.73% 2,817.08% 508.27%

Risk & Volatility

Cheniere Energy has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500. Comparatively, Cheniere Energy’s peers have a beta of 1.28, suggesting that their average share price is 28% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Cheniere Energy and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cheniere Energy 0 1 7 0 2.88
Cheniere Energy Competitors 60 257 514 11 2.57

Cheniere Energy presently has a consensus price target of $52.19, indicating a potential upside of 5.22%. As a group, “LNG Transportation & Storage” companies have a potential upside of 13.79%. Given Cheniere Energy’s peers higher possible upside, analysts clearly believe Cheniere Energy has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Cheniere Energy and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Cheniere Energy N/A N/A -52.21
Cheniere Energy Competitors $302.22 million $55.11 million 54.13

Cheniere Energy’s peers have higher revenue and earnings than Cheniere Energy. Cheniere Energy is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

71.1% of shares of all “LNG Transportation & Storage” companies are held by institutional investors. 5.6% of shares of all “LNG Transportation & Storage” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Cheniere Energy peers beat Cheniere Energy on 8 of the 11 factors compared.

About Cheniere Energy

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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