Financial Analysis: Vitesse Energy (NYSE:VTS) versus Cheniere Energy (NYSE:LNG)

Cheniere Energy (NYSE:LNG) and Vitesse Energy (NYSE:VTS) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Valuation & Earnings

This table compares Cheniere Energy and Vitesse Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheniere Energy	$19.98 billion	2.67	$5.33 billion	$6.08	41.90
Vitesse Energy	$273.99 million	2.35	$25.28 million	($0.50)	-30.89

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cheniere Energy	7.23%	38.95%	9.34%
Vitesse Energy	-7.15%	3.53%	2.43%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Cheniere Energy and Vitesse Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheniere Energy	0	3	16	2	2.95
Vitesse Energy	1	2	0	0	1.67

Cheniere Energy currently has a consensus target price of $297.71, indicating a potential upside of 16.85%. Vitesse Energy has a consensus target price of $20.00, indicating a potential upside of 29.50%. Given Vitesse Energy’s higher probable upside, analysts plainly believe Vitesse Energy is more favorable than Cheniere Energy.

Insider & Institutional Ownership

87.3% of Cheniere Energy shares are owned by institutional investors. Comparatively, 51.6% of Vitesse Energy shares are owned by institutional investors. 0.6% of Cheniere Energy shares are owned by insiders. Comparatively, 13.9% of Vitesse Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Cheniere Energy pays an annual dividend of $2.22 per share and has a dividend yield of 0.9%. Vitesse Energy pays an annual dividend of $1.75 per share and has a dividend yield of 11.3%. Cheniere Energy pays out 36.5% of its earnings in the form of a dividend. Vitesse Energy pays out -350.0% 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. Vitesse Energy has raised its dividend for 2 consecutive years. Vitesse Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Cheniere Energy has a beta of -0.01, meaning that its stock price is 101% less volatile than the S&P 500. Comparatively, Vitesse Energy has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.

Summary

Cheniere Energy beats Vitesse Energy on 12 of the 18 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 Vitesse Energy

Vitesse Energy, Inc., together with its subsidiaries, engages in the acquisition, development, and production of non-operated oil and natural gas properties in the United States. It owns and acquires non-operated working interest and royalty interest ownership in the Williston Basin properties located in North Dakota and Montana. The company also owns non-operated interests in the Central Rockies properties located in Colorado and Wyoming. Vitesse Energy, Inc. was founded in 2014 and is based in Centennial, Colorado.