EQT Midstream Partners, (NYSE: EQM) and Cheniere Energy Partners (NYSE:CQP) are both mid-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Profitability

This table compares EQT Midstream Partners, and Cheniere Energy Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EQT Midstream Partners, 66.99% 25.61% 16.75%
Cheniere Energy Partners 4.64% 39.76% 1.08%

Institutional and Insider Ownership

73.4% of EQT Midstream Partners, shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares EQT Midstream Partners, and Cheniere Energy Partners’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
EQT Midstream Partners, $774.18 million 7.68 $623.10 million $5.17 14.27
Cheniere Energy Partners $2.77 billion 4.74 $926.06 million N/A N/A

Cheniere Energy Partners has higher revenue and earnings than EQT Midstream Partners,.

Analyst Recommendations

This is a breakdown of current ratings for EQT Midstream Partners, and Cheniere Energy Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EQT Midstream Partners, 0 2 4 0 2.67
Cheniere Energy Partners 0 4 1 0 2.20

EQT Midstream Partners, presently has a consensus price target of $91.00, indicating a potential upside of 23.36%. Cheniere Energy Partners has a consensus price target of $35.00, indicating a potential upside of 28.96%. Given Cheniere Energy Partners’ higher probable upside, analysts plainly believe Cheniere Energy Partners is more favorable than EQT Midstream Partners,.

Dividends

EQT Midstream Partners, pays an annual dividend of $3.74 per share and has a dividend yield of 5.1%. Cheniere Energy Partners does not pay a dividend. EQT Midstream Partners, pays out 72.3% of its earnings in the form of a dividend. EQT Midstream Partners, has increased its dividend for 4 consecutive years.

Summary

EQT Midstream Partners, beats Cheniere Energy Partners on 8 of the 14 factors compared between the two stocks.

About EQT Midstream Partners,

EQT Midstream Partners, LP (EQM) owns, operates, acquires and develops midstream assets in the Appalachian Basin. The Company’s segments include Gathering and Transmission. The Gathering segment primarily includes high pressure gathering lines and the Federal Energy Regulatory Commission (FERC)-regulated low pressure gathering system. Transmission includes EQM’s FERC-regulated interstate pipeline and storage business. The Company’s operations are primarily focused in southwestern Pennsylvania and northern West Virginia. As of December 31, 2016, the Company provided midstream services to EQT Corporation (EQT) and a range of third parties across 24 counties in Pennsylvania, West Virginia and Ohio through its two assets: the gathering system, which delivered natural gas from wells and other receipt points to transmission pipelines, and the transmission and storage system, which served as a header system transmission pipeline.

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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