Cheniere Energy (NYSE:LNG – Get Free Report) and PrimeEnergy (NASDAQ:PNRG – Get Free Report) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.
Valuation and Earnings
This table compares Cheniere Energy and PrimeEnergy”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cheniere Energy | $19.98 billion | 2.79 | $5.33 billion | $13.43 | 20.11 |
| PrimeEnergy | $176.29 million | 1.84 | $26.31 million | $10.38 | 19.72 |
Profitability
This table compares Cheniere Energy and PrimeEnergy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cheniere Energy | 13.57% | 29.80% | 7.05% |
| PrimeEnergy | 13.87% | 11.47% | 7.67% |
Insider and Institutional Ownership
87.3% of Cheniere Energy shares are held by institutional investors. 0.6% of Cheniere Energy shares are held by insiders. Comparatively, 65.3% of PrimeEnergy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Cheniere Energy and PrimeEnergy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cheniere Energy | 0 | 3 | 15 | 2 | 2.95 |
| PrimeEnergy | 0 | 2 | 0 | 0 | 2.00 |
Cheniere Energy presently has a consensus target price of $305.65, indicating a potential upside of 13.16%. Given Cheniere Energy’s stronger consensus rating and higher probable upside, equities analysts plainly believe Cheniere Energy is more favorable than PrimeEnergy.
Volatility and Risk
Cheniere Energy has a beta of 0.06, suggesting that its share price is 94% less volatile than the S&P 500. Comparatively, PrimeEnergy has a beta of -0.18, suggesting that its share price is 118% less volatile than the S&P 500.
Summary
Cheniere Energy beats PrimeEnergy on 12 of the 15 factors compared between the two stocks.
About Cheniere Energy
Cheniere Energy, Inc., an energy infrastructure company, primarily engages in the liquefied natural gas (LNG) related businesses in the United States. It owns and operates the Sabine Pass LNG terminal in Cameron Parish, Louisiana; and the Corpus Christi LNG terminal near Corpus Christi, Texas. The company also owns Creole Trail pipeline, a 94-mile natural gas supply pipeline that interconnects the Sabine Pass LNG Terminal with several interstate and intrastate pipelines; and operates Corpus Christi pipeline, a 21.5-mile natural gas supply pipeline that interconnects the Corpus Christi LNG terminal with various interstate and intrastate natural gas pipelines. It is also involved in the LNG and natural gas marketing business. The company was incorporated in 1983 and is headquartered in Houston, Texas.
About PrimeEnergy
PrimeEnergy Resources Corporation, through its subsidiaries, engages in acquisition, development, and production of oil and natural gas properties in the United States. The company owns leasehold, mineral, and royalty interests in producing and non-producing oil and gas properties; and operates approximately 534 active wells and owns non-operating interests and royalties in 952 additional wells. It also acquires producing oil and gas properties through joint ventures with industry partners; and provides contract services to third parties, including well-servicing support, site-preparation, and construction services for oil and gas drilling and reworking operations. The company was formerly known as PrimeEnergy Corporation and changed its name to PrimeEnergy Resources Corporation in December 2018. PrimeEnergy Resources Corporation was incorporated in 1973 and is headquartered in Houston, Texas.
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