Critical Contrast: ONE Gas (NYSE:OGS) & Cheniere Energy Partners (NYSE:CQP)

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

Analyst Ratings

This is a summary of recent ratings for Cheniere Energy Partners and ONE Gas, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheniere Energy Partners	2	0	0	0	1.00
ONE Gas	1	5	2	0	2.13

Cheniere Energy Partners currently has a consensus price target of $50.50, indicating a potential downside of 3.29%. ONE Gas has a consensus price target of $72.69, indicating a potential upside of 5.77%. Given ONE Gas’ stronger consensus rating and higher possible upside, analysts clearly believe ONE Gas is more favorable than Cheniere Energy Partners.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cheniere Energy Partners	31.28%	-328.60%	13.93%
ONE Gas	10.52%	7.71%	2.76%

Insider & Institutional Ownership

46.5% of Cheniere Energy Partners shares are owned by institutional investors. Comparatively, 88.7% of ONE Gas shares are owned by institutional investors. 1.4% of ONE Gas shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheniere Energy Partners	$8.93 billion	2.83	$4.25 billion	$4.63	11.28
ONE Gas	$2.06 billion	1.89	$231.23 million	$3.84	17.90

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

Volatility & Risk

Cheniere Energy Partners has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, ONE Gas has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.

Dividends

Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 5.9%. ONE Gas pays an annual dividend of $2.64 per share and has a dividend yield of 3.8%. Cheniere Energy Partners pays out 67.0% of its earnings in the form of a dividend. ONE Gas pays out 68.8% 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. Cheniere Energy Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Cheniere Energy Partners beats ONE Gas on 9 of the 16 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 ONE Gas

ONE Gas, Inc., together with its subsidiaries, operates as a regulated natural gas distribution company in the United States. The company provides natural gas distribution services to approximately 2.3 million customers in Oklahoma, Kansas, and Texas. It serves residential, commercial, and transportation customers. The company was founded in 1906 and is headquartered in Tulsa, Oklahoma.