Cheniere Energy Partners (NYSE:CQP) and Genesis Energy (NYSE:GEL) Head-To-Head Review

Cheniere Energy Partners (NYSE:CQP) and Genesis Energy (NYSE:GEL) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Dividends

Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 4.7%. Genesis Energy pays an annual dividend of $0.80 per share and has a dividend yield of 5.5%. Cheniere Energy Partners pays out 54.2% of its earnings in the form of a dividend. Genesis Energy pays out 421.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Genesis Energy has increased its dividend for 1 consecutive years. Genesis Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheniere Energy Partners	5	4	1	0	1.60
Genesis Energy	0	1	2	0	2.67

Cheniere Energy Partners presently has a consensus price target of $62.25, indicating a potential downside of 6.30%. Genesis Energy has a consensus price target of $17.50, indicating a potential upside of 19.78%. Given Genesis Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Genesis Energy is more favorable than Cheniere Energy Partners.

Risk & Volatility

Cheniere Energy Partners has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, Genesis Energy has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cheniere Energy Partners	28.05%	497.69%	15.10%
Genesis Energy	4.29%	55.96%	1.58%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheniere Energy Partners	$11.67 billion	2.76	$2.99 billion	$5.72	11.61
Genesis Energy	$1.63 billion	1.10	-$440.40 million	$0.19	76.89

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

Institutional and Insider Ownership

46.5% of Cheniere Energy Partners shares are held by institutional investors. Comparatively, 66.8% of Genesis Energy shares are held by institutional investors. 0.7% of Genesis Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Genesis Energy beats Cheniere Energy Partners on 9 of the 17 factors compared between the two stocks.

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.

About Genesis Energy

Genesis Energy, L.P. provides integrated suite of midstream services in crude oil and natural gas industry in the United States. It operates through Offshore Pipeline Transportation, Soda and Sulfur Services, Marine Transportation, and Onshore Facilities and Transportation segments. The Offshore Pipeline Transportation segment engages in offshore crude oil and natural gas pipeline transportation and handling operations, as well as deep water pipeline servicing. This segment also owns interests in offshore crude oil and natural gas pipeline systems, platforms, and related infrastructure. The Soda and Sulfur Services segment produces, markets, and sells soda ash; and provides sulfur removal services. This segment also owns and operates soda ash production facilities, underground trona ore mines and brine solution mining operations and related equipment, and logistics and other assets; and sells sodium hydrosulfide and caustic soda to industrial and commercial companies involved in the mining of base metals. The Marine Transportation segment offers waterborne transportation of petroleum and crude oil in North America. This segment owns a fleet of 91 barges and 42 push/tow boats. The Onshore Facilities and Transportation segment offers onshore facilities and transportation services to crude oil refineries and producers by purchasing, transporting, storing, blending, and marketing crude oil and refined products; and operates trucks, trailers, railcars, and terminals and tankage in various locations along the Gulf Coast. This segment also transports crude oil, as well as owns four onshore crude oil pipeline systems and four operational crude oil rail unloading facilities. The company was incorporated in 1996 and is headquartered in Houston, Texas.