Cheniere Energy Partners (NYSE:CQP) versus Teekay Tankers (NYSE:TNK) Head-To-Head Comparison

Teekay Tankers (NYSE:TNK) and Cheniere Energy Partners (NYSE:CQP) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

This table compares Teekay Tankers and Cheniere Energy Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teekay Tankers	51.35%	22.11%	20.23%
Cheniere Energy Partners	27.31%	1,121.60%	14.59%

Valuation and Earnings

This table compares Teekay Tankers and Cheniere Energy Partners”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teekay Tankers	$951.80 million	3.42	$351.19 million	$16.97	5.55
Cheniere Energy Partners	$11.50 billion	2.66	$2.99 billion	$5.51	11.47

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

Risk & Volatility

Teekay Tankers has a beta of -0.19, suggesting that its stock price is 119% less volatile than the S&P 500. Comparatively, Cheniere Energy Partners has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500.

Institutional and Insider Ownership

52.7% of Teekay Tankers shares are owned by institutional investors. Comparatively, 46.5% of Cheniere Energy Partners shares are owned by institutional investors. 1.9% of Teekay Tankers shares are owned by company 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.

Dividends

Teekay Tankers pays an annual dividend of $1.00 per share and has a dividend yield of 1.1%. Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 4.9%. Teekay Tankers pays out 5.9% of its earnings in the form of a dividend. Cheniere Energy Partners pays out 56.3% 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. Teekay Tankers has increased its dividend for 2 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Teekay Tankers and Cheniere Energy Partners, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teekay Tankers	1	3	3	1	2.50
Cheniere Energy Partners	5	3	1	0	1.56

Teekay Tankers presently has a consensus price target of $77.00, suggesting a potential downside of 18.23%. Cheniere Energy Partners has a consensus price target of $62.00, suggesting a potential downside of 1.91%. Given Cheniere Energy Partners’ higher probable upside, analysts plainly believe Cheniere Energy Partners is more favorable than Teekay Tankers.

Summary

Teekay Tankers beats Cheniere Energy Partners on 11 of the 18 factors compared between the two stocks.

About Teekay Tankers

Teekay Tankers Ltd. provides crude oil and other marine transportation services to oil industries in Bermuda and internationally. The company offers voyage and time charter services; offshore ship-to-ship transfer services of commodities primarily crude oil and refined oil products; and tanker commercial and technical management services. It also engages management of vessels, procurement, and equipment rental businesses. Teekay Tankers Ltd. was incorporated in 2007 and is headquartered in Hamilton, Bermuda.

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.