Financial Analysis: Cheniere Energy Partners (NYSE:CQP) & Gevo (NASDAQ:GEVO)

Cheniere Energy Partners (NYSE:CQPGet Free Report) and Gevo (NASDAQ:GEVOGet Free Report) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Institutional and Insider Ownership

46.6% of Cheniere Energy Partners shares are owned by institutional investors. Comparatively, 35.2% of Gevo shares are owned by institutional investors. 7.1% of Gevo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Cheniere Energy Partners and Gevo, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cheniere Energy Partners 5 3 1 0 1.56
Gevo 2 1 2 0 2.00

Cheniere Energy Partners presently has a consensus target price of $60.43, indicating a potential downside of 5.15%. Gevo has a consensus target price of $6.58, indicating a potential upside of 291.87%. Given Gevo’s stronger consensus rating and higher probable upside, analysts clearly believe Gevo is more favorable than Cheniere Energy Partners.

Valuation & Earnings

This table compares Cheniere Energy Partners and Gevo”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cheniere Energy Partners $10.76 billion 2.87 $2.99 billion $4.28 14.88
Gevo $160.58 million 2.55 -$33.84 million ($0.13) -12.92

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

Risk & Volatility

Cheniere Energy Partners has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500. Comparatively, Gevo has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Cheniere Energy Partners 22.27% -4,929.80% 14.15%
Gevo -19.38% -5.06% -3.41%

Summary

Cheniere Energy Partners beats Gevo on 7 of the 13 factors compared between the two stocks.

About Cheniere Energy Partners

(Get Free Report)

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 Gevo

(Get Free Report)

Gevo, Inc. operates as a carbon abatement company. It operates through three segments: Gevo, Agri-Energy, and Renewable Natural Gas. The company focuses on transforming renewable energy into energy-dense liquid hydrocarbons that can be used as renewable fuels. It offers renewable gasoline and diesel, isobutanol, sustainable aviation fuel, renewable natural gas, isobutylene, ethanol, and animal feed and protein. The company was formerly known as Methanotech, Inc. and changed its name to Gevo, Inc. in March 2006. Gevo, Inc. was incorporated in 2005 and is headquartered in Englewood, Colorado.

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