Cheniere Energy (NYSE: LNG) and Rice Midstream Partners (NYSE:RMP) are both mid-cap energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.

Dividends

Rice Midstream Partners pays an annual dividend of $1.08 per share and has a dividend yield of 5.5%. Cheniere Energy does not pay a dividend. Rice Midstream Partners pays out 70.1% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Cheniere Energy 1.69% N/A 0.32%
Rice Midstream Partners 58.22% 12.71% 10.92%

Earnings & Valuation

This table compares Cheniere Energy and Rice Midstream Partners’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cheniere Energy $3.48 billion 2.81 $1.11 billion N/A N/A
Rice Midstream Partners $235.66 million 8.57 $180.22 million $1.54 12.82

Cheniere Energy has higher revenue and earnings than Rice Midstream Partners.

Analyst Recommendations

This is a summary of recent ratings for Cheniere Energy and Rice Midstream Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cheniere Energy 0 1 5 0 2.83
Rice Midstream Partners 0 10 3 0 2.23

Cheniere Energy currently has a consensus price target of $53.76, indicating a potential upside of 27.74%. Rice Midstream Partners has a consensus price target of $23.13, indicating a potential upside of 17.15%. Given Cheniere Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Cheniere Energy is more favorable than Rice Midstream Partners.

Summary

Cheniere Energy beats Rice Midstream Partners on 6 of the 11 factors compared between the two stocks.

About Cheniere Energy

Cheniere Energy, Inc. (Cheniere) is an energy company primarily engaged in liquefied natural gas (LNG)-related businesses. The Company operates through two segments: LNG terminal business, and LNG and natural gas marketing business. Its LNG terminal segment consists of the Sabine Pass and Corpus Christi LNG terminals. Its LNG and natural gas marketing segment consists of LNG and natural gas marketing activities by Cheniere Marketing. Cheniere Marketing is developing a portfolio of long- and medium-term SPAs with professional staff based in the United States, the United Kingdom, Singapore and Chile. The Company conducts its business through its subsidiaries, including the development, construction and operation of its LNG terminal business and the development and operation of its LNG and natural gas marketing business. The Company owns and operates the Sabine Pass LNG terminal in Louisiana through its ownership interest in and management agreements with Cheniere Partners.

About Rice Midstream Partners

Rice Midstream Partners LP owns, operates, develops and acquires midstream assets in the Appalachian Basin. The Company’s segments are gathering and compression, and water services. The gathering and compression segment provides natural gas gathering and compression services for Rice Energy Inc. (Rice Energy) and third parties in the Appalachian Basin. The water services segment provides water services to support well completion activities, and to collect and recycle or dispose of flowback and produced water for Rice Energy and third parties in the Appalachian Basin. Its gas gathering and compression assets are located within the dry gas core of the Marcellus Shale and, consists of approximately 3.3 million dekatherms per day (MMDth/d) high-pressure dry gas gathering system and associated compression in Washington County, Pennsylvania, and an approximately 840 thousand dekatherms per day (MDth/d) high-pressure dry gas gathering system in Greene County, Pennsylvania.

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