Critical Analysis: Cheniere Energy Partners (NYSE:CQP) vs. American Power Group (OTCMKTS:APGI)

American Power Group (OTCMKTS:APGI) and Cheniere Energy Partners (NYSE:CQP) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Earnings & Valuation

This table compares American Power Group and Cheniere Energy Partners”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Power Group	$2.13 million	5.08	-$1.71 million	N/A	N/A
Cheniere Energy Partners	$8.70 billion	3.31	$2.51 billion	$3.84	15.48

Cheniere Energy Partners has higher revenue and earnings than American Power Group.

Profitability

This table compares American Power Group and Cheniere Energy Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Power Group	N/A	N/A	N/A
Cheniere Energy Partners	22.54%	-591.00%	13.64%

Volatility & Risk

American Power Group has a beta of -0.5, suggesting that its stock price is 150% less volatile than the S&P 500. Comparatively, Cheniere Energy Partners has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for American Power Group and Cheniere Energy Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Power Group	0	0	0	0	0.00
Cheniere Energy Partners	6	2	0	0	1.25

Cheniere Energy Partners has a consensus target price of $54.00, indicating a potential downside of 9.14%. Given Cheniere Energy Partners’ stronger consensus rating and higher probable upside, analysts plainly believe Cheniere Energy Partners is more favorable than American Power Group.

Institutional and Insider Ownership

46.6% of Cheniere Energy Partners shares are owned by institutional investors. 75.8% of American Power Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Cheniere Energy Partners beats American Power Group on 8 of the 11 factors compared between the two stocks.

About American Power Group

American Power Group Corporation provides patented dual fuel conversion system for primary and back-up diesel generators, and mid-to heavy-duty vehicular diesel engines in North America and internationally. It operates through two segments, Dual Fuel Conversion Operations and Natural Gas Liquids Operations. The company's dual fuel conversion system is a fuel delivery enhancement system that converts existing diesel engines into engines, which run on diesel fuel and compressed natural gas or liquefied natural gas; diesel fuel and pipeline gas, well-head gas, or approved bio-methane; and diesel. It also provides flare capture and recovery services to oil and gas production companies. The company was formerly known as GreenMan Technologies, Inc. and changed its name to American Power Group Corporation in August 2012. American Power Group Corporation was founded in 1992 and is headquartered in Algona, Iowa.

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.