Head to Head Analysis of Cheniere Energy Partners and Spire

Cheniere Energy Partners (NYSE:CQP) and Spire (NYSE:SR) are both significant players in the utilities sector, but which one stands out as a better investment? This analysis compares the two companies across several key dimensions including dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings, and risk assessment.

Risk Assessment and Volatility

Spire has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500 index. In contrast, Cheniere Energy Partners boasts a beta of 0.75, signifying that its stock is 25% less volatile than the S&P 500. This suggests that Spire might provide a slightly more stable investment compared to Cheniere Energy Partners.

Institutional and Insider Ownership

A remarkable 87.4% of Spire shares are held by institutional investors, whereas only 46.5% of Cheniere Energy Partners shares are owned by such entities. Additionally, Spire has 2.3% of its shares owned by company insiders. High institutional ownership often reflects confidence from significant investors about a company’s long-term performance potential.

Analyst Ratings

Current analyst recommendations for Spire and Cheniere Energy Partners offer further insights into their market positions.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spire	1	6	2	0	2.11
Cheniere Energy Partners	2	0	0	0	1.00

According to market data, Spire has a consensus target price of $71.50, which suggests a potential upside of 7.53% from its current level. Conversely, Cheniere Energy Partners has a consensus target price of $50.50, implying a potential downside of 8.98%. This indicates that analysts generally view Spire as a more attractive option compared to Cheniere Energy Partners.

Profitability Comparison

The financial health of both companies can be assessed through metrics like net margins, return on equity (ROE), and return on assets (ROA).

	Net Margins	Return on Equity	Return on Assets
Spire	9.52%	8.10%	2.27%
Cheniere Energy Partners	31.28%	-328.60%	13.93%

Cheniere Energy Partners demonstrates higher net margins compared to Spire, although its return on equity appears concerning due to a negative figure. Nevertheless, it has a stronger return on assets.

Valuation and Earnings

The below table highlights the gross revenue, earnings per share (EPS), and valuation for both companies.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spire	$2.59 billion	1.48	$250.90 million	$4.31	15.43
Cheniere Energy Partners	$8.93 billion	3.01	$4.25 billion	$4.63	11.98

Cheniere Energy Partners achieves higher revenue and net income compared to Spire and has a lower price-to-earnings ratio, which suggests that it may be more reasonably priced in the current market.

Dividend Analysis

When it comes to dividends, Spire pays an annual dividend of $3.14 per share, resulting in a yield of 4.7%. In comparison, Cheniere Energy Partners offers an annual dividend of $3.10 per share, with a higher yield of 5.6%. Furthermore, Spire distributes 72.9% of its earnings in dividends, while Cheniere Energy Partners maintains a lower dividend payout ratio of 67.0%. Both companies exhibit healthy dividend-paying capabilities, with Spire boasting 22 consecutive years of dividend increases. Overall, Cheniere Energy Partners is recognized as the stronger dividend stock due to its higher yield and lower payout ratio.

Conclusion

In summary, Cheniere Energy Partners outperforms Spire in 9 out of the 17 categories assessed in this analysis, establishing it as a compelling option for potential investors.

About Spire

Spire Inc. is involved in the purchase, retail distribution, and sale of natural gas in the United States, catering to various consumers such as residential, commercial, and industrial clients. Operating through segments such as Gas Utility, Gas Marketing, and Midstream, Spire has been a significant player since its founding in 1857, with its headquarters in Saint Louis, Missouri.

About Cheniere Energy Partners

Cheniere Energy Partners, L.P. focuses on providing liquefied natural gas (LNG) to energy companies, utilities, and trading firms globally. Operating the Sabine Pass LNG Terminal in Louisiana, it has played a critical role in the LNG export industry since its establishment in 2003, with its base in Houston, Texas.

Cheniere, Spire, Utilities