Cheniere Energy (NYSE:LNG – Get Free Report) and AER Energy Resources (OTCMKTS:AERN – Get Free Report) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.
Earnings & Valuation
This table compares Cheniere Energy and AER Energy Resources”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Cheniere Energy | $15.70 billion | 3.25 | $3.25 billion | $17.13 | 13.55 |
AER Energy Resources | N/A | N/A | N/A | N/A | N/A |
Analyst Recommendations
This is a summary of current ratings and target prices for Cheniere Energy and AER Energy Resources, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Cheniere Energy | 0 | 1 | 17 | 1 | 3.00 |
AER Energy Resources | 0 | 0 | 0 | 0 | 0.00 |
Cheniere Energy presently has a consensus target price of $263.60, indicating a potential upside of 13.55%. Given Cheniere Energy’s stronger consensus rating and higher probable upside, research analysts clearly believe Cheniere Energy is more favorable than AER Energy Resources.
Insider and Institutional Ownership
87.3% of Cheniere Energy shares are held by institutional investors. 0.3% of Cheniere Energy shares are held by company insiders. Comparatively, 61.0% of AER Energy Resources 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.
Profitability
This table compares Cheniere Energy and AER Energy Resources’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Cheniere Energy | 21.05% | 37.83% | 8.79% |
AER Energy Resources | N/A | N/A | N/A |
Volatility and Risk
Cheniere Energy has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500. Comparatively, AER Energy Resources has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.
Summary
Cheniere Energy beats AER Energy Resources on 9 of the 11 factors compared between the two stocks.
About Cheniere Energy
Cheniere Energy, Inc., an energy infrastructure company, primarily engages in the liquefied natural gas (LNG) related businesses in the United States. It owns and operates the Sabine Pass LNG terminal in Cameron Parish, Louisiana; and the Corpus Christi LNG terminal near Corpus Christi, Texas. The company also owns Creole Trail pipeline, a 94-mile natural gas supply pipeline that interconnects the Sabine Pass LNG Terminal with several interstate and intrastate pipelines; and operates Corpus Christi pipeline, a 21.5-mile natural gas supply pipeline that interconnects the Corpus Christi LNG terminal with various interstate and intrastate natural gas pipelines. It is also involved in the LNG and natural gas marketing business. The company was incorporated in 1983 and is headquartered in Houston, Texas.
About AER Energy Resources
AER Energy Resources, Inc., through its subsidiaries, engages in acquiring, managing, and operating oil and gas properties in North America. The company is also involved in the recycling of used motor oil; marketing of related fuel and energy products to users, suppliers, and recycler’s; and real estate business. AER Energy Resources, Inc. was founded in 1989 and is based in Scottsdale, Arizona.
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