Buckeye Partners L.P. (NYSE: BPL) and Cheniere Energy Partners (NYSE:CQP) are both mid-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Insider & Institutional Ownership

68.8% of Buckeye Partners L.P. shares are held by institutional investors. 0.4% of Buckeye Partners L.P. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Buckeye Partners L.P. and Cheniere Energy Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Buckeye Partners L.P. 14.42% 11.04% 5.29%
Cheniere Energy Partners 4.64% 39.76% 1.08%

Dividends

Buckeye Partners L.P. pays an annual dividend of $5.05 per share and has a dividend yield of 8.8%. Cheniere Energy Partners does not pay a dividend. Buckeye Partners L.P. pays out 138.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Buckeye Partners L.P. has raised its dividend for 14 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Buckeye Partners L.P. and Cheniere Energy Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Buckeye Partners L.P. 0 8 1 0 2.11
Cheniere Energy Partners 0 4 2 0 2.33

Buckeye Partners L.P. currently has a consensus target price of $70.78, suggesting a potential upside of 22.69%. Cheniere Energy Partners has a consensus target price of $34.50, suggesting a potential upside of 21.69%. Given Buckeye Partners L.P.’s higher probable upside, research analysts plainly believe Buckeye Partners L.P. is more favorable than Cheniere Energy Partners.

Earnings and Valuation

This table compares Buckeye Partners L.P. and Cheniere Energy Partners’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Buckeye Partners L.P. $3.47 billion 2.35 $979.66 million $3.65 15.81
Cheniere Energy Partners $2.77 billion 4.95 $926.06 million N/A N/A

Buckeye Partners L.P. has higher revenue and earnings than Cheniere Energy Partners.

Summary

Buckeye Partners L.P. beats Cheniere Energy Partners on 9 of the 15 factors compared between the two stocks.

About Buckeye Partners L.P.

Buckeye Partners, L.P. (Buckeye) owns and operates a network of integrated assets providing midstream logistic solutions, primarily consisting of the transportation, storage, processing and marketing of liquid petroleum products. Its segments include Domestic Pipelines & Terminals, Global Marine Terminals and Merchant Services. As of December 31, 2016, the Domestic Pipelines & Terminals segment owned and operated approximately 6,000 miles of pipeline located primarily in the northeastern and upper Midwestern portions of the United States, and serviced approximately 110 delivery locations. The Global Marine Terminals segment provides marine accessible bulk storage and blending services, rail and truck rack loading/unloading, along with petroleum processing services in the East Coast and Gulf Coast regions of the United States and in the Caribbean. The Merchant Services segment is a wholesale distributor of petroleum products in the continental United States and in the Caribbean.

About Cheniere Energy Partners

Cheniere Energy Partners, L.P. (Cheniere Partners) is a limited partnership formed by Cheniere Energy, Inc (Cheniere). The Company operates through liquefaction and regasification operations at the Sabine Pass LNG terminal segment. Through its subsidiary, Sabine Pass Liquefaction, LLC (SPL), it is developing, constructing and operating natural gas liquefaction facilities (the Liquefaction Project) at the Sabine Pass LNG terminal located in Cameron Parish, Louisiana, on the Sabine-Neches Waterway less than four miles from the Gulf Coast. Through its subsidiary, Sabine Pass LNG, L.P., it owns and operates regasification facilities at the Sabine Pass LNG terminal, which includes existing infrastructure of five LNG storage tanks with capacity of approximately 16.9 billion cubic feet equivalent, two marine berths that can accommodate vessels with nominal capacity of up to 266,000 cubic meters and vaporizers with regasification capacity of approximately four billion cubic feet per day.

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