Analyzing Dorian LPG (NYSE:LPG) & Cheniere Energy Partners (NYSE:CQP)

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Cheniere Energy Partners and Dorian LPG, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheniere Energy Partners	5	3	1	0	1.56
Dorian LPG	0	1	3	1	3.00

Cheniere Energy Partners presently has a consensus target price of $62.00, indicating a potential downside of 5.75%. Dorian LPG has a consensus target price of $55.00, indicating a potential upside of 1.67%. Given Dorian LPG’s stronger consensus rating and higher probable upside, analysts clearly believe Dorian LPG is more favorable than Cheniere Energy Partners.

Valuation and Earnings

This table compares Cheniere Energy Partners and Dorian LPG”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	$11.50 billion	2.77	$2.99 billion	$5.51	11.94
Dorian LPG	$585.18 million	3.96	$193.67 million	$7.55	7.17

Cheniere Energy Partners has higher revenue and earnings than Dorian LPG. Dorian LPG 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.

Institutional and Insider Ownership

46.5% of Cheniere Energy Partners shares are owned by institutional investors. Comparatively, 62.5% of Dorian LPG shares are owned by institutional investors. 13.5% of Dorian LPG shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 4.7%. Dorian LPG pays an annual dividend of $1.00 per share and has a dividend yield of 1.8%. Cheniere Energy Partners pays out 56.3% of its earnings in the form of a dividend. Dorian LPG pays out 13.2% 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.

Profitability

This table compares Cheniere Energy Partners and Dorian LPG’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%
Dorian LPG	55.00%	25.69%	15.87%

Risk & Volatility

Cheniere Energy Partners has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, Dorian LPG has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.

Summary

Dorian LPG beats Cheniere Energy Partners on 12 of the 17 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 Dorian LPG

Dorian LPG Ltd., together with its subsidiaries, engages in the transportation of liquefied petroleum gas through its LPG tankers worldwide. It owns and operates twenty-five very large gas carriers. The company was incorporated in 2013 and is headquartered in Stamford, Connecticut.