Excelerate Energy (NYSE:EE) versus Cheniere Energy Partners (NYSE:CQP) Critical Review

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Excelerate Energy	1	1	4	0	2.50
Cheniere Energy Partners	2	0	0	0	1.00

Excelerate Energy presently has a consensus target price of $28.33, indicating a potential downside of 10.42%. Cheniere Energy Partners has a consensus target price of $50.50, indicating a potential downside of 8.94%. Given Cheniere Energy Partners’ higher probable upside, analysts plainly believe Cheniere Energy Partners is more favorable than Excelerate Energy.

Valuation & Earnings

This table compares Excelerate Energy and Cheniere Energy Partners”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Excelerate Energy	$816.93 million	4.12	$30.41 million	$0.99	31.95
Cheniere Energy Partners	$8.93 billion	3.01	$4.25 billion	$4.63	11.98

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Excelerate Energy	3.14%	1.39%	0.90%
Cheniere Energy Partners	31.28%	-328.60%	13.93%

Risk & Volatility

Excelerate Energy has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, Cheniere Energy Partners has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Insider and Institutional Ownership

21.8% of Excelerate Energy shares are held by institutional investors. Comparatively, 46.5% of Cheniere Energy Partners shares are held by institutional investors. 1.7% of Excelerate Energy 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.

Dividends

Excelerate Energy pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 5.6%. Excelerate Energy pays out 24.2% of its earnings in the form of a dividend. Cheniere Energy Partners pays out 67.0% 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.

About Excelerate Energy

Excelerate Energy, Inc. provides flexible liquefied natural gas (LNG) solutions worldwide. The company offers regasification services, including floating storage and regasification units (FSRUs), infrastructure development, and LNG and natural gas supply, procurement, and distribution services; LNG terminal services; and natural gas supply to-power projects. Excelerate Energy, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas. Excelerate Energy, Inc. is a subsidiary of Excelerate Energy Holdings, LLC.

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.