Cheniere Energy Partners (NYSE:CQP) versus Anadarko Petroleum (NASDAQ:APC) Critical Contrast

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

Analyst Recommendations

This is a breakdown of current recommendations for Cheniere Energy Partners and Anadarko Petroleum, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheniere Energy Partners	5	3	1	0	1.56
Anadarko Petroleum	2	1	3	1	2.43

Cheniere Energy Partners presently has a consensus target price of $62.00, indicating a potential downside of 5.98%. Anadarko Petroleum has a consensus target price of $21.80, indicating a potential upside of 16.83%. Given Anadarko Petroleum’s stronger consensus rating and higher possible upside, analysts clearly believe Anadarko Petroleum is more favorable than Cheniere Energy Partners.

Institutional and Insider Ownership

46.5% of Cheniere Energy Partners shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Cheniere Energy Partners and Anadarko Petroleum”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheniere Energy Partners	$10.76 billion	2.97	$2.99 billion	$5.51	11.97
Anadarko Petroleum	$5.58 billion	0.04	$32.73 million	$0.69	27.04

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cheniere Energy Partners	27.31%	1,121.60%	14.59%
Anadarko Petroleum	N/A	N/A	N/A

Dividends

Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 4.7%. Anadarko Petroleum pays an annual dividend of $2.00 per share and has a dividend yield of 10.7%. Cheniere Energy Partners pays out 56.3% of its earnings in the form of a dividend. Anadarko Petroleum pays out 289.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Cheniere Energy Partners beats Anadarko Petroleum on 9 of the 15 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 Anadarko Petroleum

Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of oil and gas properties. It operates through three segments: Exploration and Production, WES Midstream, and Other Midstream. The company explores for and produces oil, natural gas, and natural gas liquids (NGLs). It is also involved in gathering, processing, treating, and transporting oil, natural-gas, and NGLs production, as well as the gathering and disposal of produced water. The company's oil and natural gas properties are located in the United States onshore and deepwater Gulf of Mexico; and Algeria, Ghana, Mozambique, Colombia, Peru, and other countries. As of December 31, 2018, it had approximately 1.5 billion barrels of oil equivalent of proved reserves. The company was founded in 1959 and is headquartered in The Woodlands, Texas.