TransCanada Corporation (NYSE: TRP) and Cheniere Energy Partners (NYSE:CQP) are both mid-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitabiliy and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
TransCanada Corporation 8.16% 12.08% 3.04%
Cheniere Energy Partners 5.27% 42.56% 1.16%

Analyst Recommendations

This is a summary of recent ratings and target prices for TransCanada Corporation and Cheniere Energy Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TransCanada Corporation 0 0 9 0 3.00
Cheniere Energy Partners 0 4 1 0 2.20

TransCanada Corporation presently has a consensus target price of $65.21, suggesting a potential upside of 30.21%. Cheniere Energy Partners has a consensus target price of $35.00, suggesting a potential upside of 25.22%. Given TransCanada Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe TransCanada Corporation is more favorable than Cheniere Energy Partners.

Dividends

TransCanada Corporation pays an annual dividend of $1.85 per share and has a dividend yield of 3.7%. Cheniere Energy Partners does not pay a dividend. TransCanada Corporation pays out 215.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

56.1% of TransCanada Corporation shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares TransCanada Corporation and Cheniere Energy Partners’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TransCanada Corporation $11.00 billion 3.97 $5.20 billion $0.86 58.23
Cheniere Energy Partners $1.92 billion 4.92 $682.06 million N/A N/A

TransCanada Corporation has higher revenue and earnings than Cheniere Energy Partners.

Summary

TransCanada Corporation beats Cheniere Energy Partners on 9 of the 12 factors compared between the two stocks.

About TransCanada Corporation

TransCanada Corporation is an energy infrastructure company. The Company is engaged in the development and operation of North American energy infrastructure, including natural gas and liquids pipelines, power generation and natural gas storage facilities. Its segments include Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines, Mexico Natural Gas Pipelines, Liquids Pipelines and Energy. The Company operates in three businesses: Natural Gas Pipelines, Liquids Pipelines and Energy. The Natural Gas Pipelines and Liquids Pipelines segments principally consist of its respective natural gas and liquids pipelines in Canada, the United States and Mexico, as well as its regulated natural gas storage operations in the United States. The Energy segment includes its power operations and the non-regulated natural gas storage business in Canada. TransCanada PipeLines Limited (TCPL) is its principal operating subsidiary.

About Cheniere Energy Partners

Cheniere Energy Partners, L.P. (Cheniere Partners) is a limited partnership formed by Cheniere Energy, Inc (Cheniere). The Company operates through liquefaction and regasification operations at the Sabine Pass LNG terminal segment. Through its subsidiary, Sabine Pass Liquefaction, LLC (SPL), it is developing, constructing and operating natural gas liquefaction facilities (the Liquefaction Project) at the Sabine Pass LNG terminal located in Cameron Parish, Louisiana, on the Sabine-Neches Waterway less than four miles from the Gulf Coast. Through its subsidiary, Sabine Pass LNG, L.P., it owns and operates regasification facilities at the Sabine Pass LNG terminal, which includes existing infrastructure of five LNG storage tanks with capacity of approximately 16.9 billion cubic feet equivalent, two marine berths that can accommodate vessels with nominal capacity of up to 266,000 cubic meters and vaporizers with regasification capacity of approximately four billion cubic feet per day.

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