Reviewing Legacy Reserves (OTCMKTS:LGCYQ) and Cheniere Energy (NYSE:LNG)

Legacy Reserves (OTCMKTS:LGCYQ) and Cheniere Energy (NYSE:LNG) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Profitability

This table compares Legacy Reserves and Cheniere Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Legacy Reserves	N/A	N/A	N/A
Cheniere Energy	21.12%	37.52%	9.05%

Institutional & Insider Ownership

87.3% of Cheniere Energy shares are held by institutional investors. 0.8% of Legacy Reserves shares are held by company insiders. Comparatively, 0.3% of Cheniere Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Legacy Reserves and Cheniere Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Legacy Reserves	N/A	N/A	N/A	N/A	N/A
Cheniere Energy	$15.70 billion	2.65	$3.25 billion	$17.95	10.78

Cheniere Energy has higher revenue and earnings than Legacy Reserves.

Analyst Ratings

This is a summary of current ratings and price targets for Legacy Reserves and Cheniere Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Legacy Reserves	0	0	0	0	0.00
Cheniere Energy	0	3	16	1	2.90

Cheniere Energy has a consensus target price of $267.53, indicating a potential upside of 38.27%. Given Cheniere Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Cheniere Energy is more favorable than Legacy Reserves.

Summary

Cheniere Energy beats Legacy Reserves on 9 of the 10 factors compared between the two stocks.

About Legacy Reserves

Legacy Reserves Inc., an independent energy company, engages in the acquisition, development, and production of oil and natural gas properties in the United States. It focuses on the horizontal development of unconventional plays in the Permian Basin and the management of shallow-decline oil and natural gas wells in the regions of Permian Basin, East Texas, Rocky Mountain, and Mid-Continent. As of December 31, 2018, the company had proved reserves of approximately 164.9 million barrels of crude oil equivalent covering natural gas, as well as oil and natural gas liquids. Legacy Reserves Inc. was founded in 2005 and is based in Midland, Texas. On June 18, 2019, Legacy Reserves Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

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.