Ultrapar Participações (NYSE:UGP) & Cheniere Energy Partners (NYSE:CQP) Financial Review

Cheniere Energy Partners (NYSE:CQP) and Ultrapar Participações (NYSE:UGP) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cheniere Energy Partners	28.84%	-325.95%	13.71%
Ultrapar Participações	2.00%	18.03%	6.93%

Volatility and Risk

Cheniere Energy Partners has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Ultrapar Participações has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500.

Dividends

Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 4.6%. Ultrapar Participações pays an annual dividend of $0.08 per share and has a dividend yield of 2.8%. Cheniere Energy Partners pays out 72.8% of its earnings in the form of a dividend. Ultrapar Participações pays out 17.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Valuation & Earnings

This table compares Cheniere Energy Partners and Ultrapar Participações”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheniere Energy Partners	$8.70 billion	3.76	$4.25 billion	$4.26	15.87
Ultrapar Participações	$131.52 billion	0.02	$488.69 million	$0.46	6.21

Cheniere Energy Partners has higher earnings, but lower revenue than Ultrapar Participações. Ultrapar Participações is trading at a lower price-to-earnings ratio than Cheniere Energy Partners, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

46.5% of Cheniere Energy Partners shares are owned by institutional investors. Comparatively, 3.6% of Ultrapar Participações shares are owned by institutional investors. 1.8% of Ultrapar Participações shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Cheniere Energy Partners and Ultrapar Participações, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheniere Energy Partners	4	0	0	0	1.00
Ultrapar Participações	0	2	4	1	2.86

Cheniere Energy Partners currently has a consensus price target of $51.50, indicating a potential downside of 23.84%. Ultrapar Participações has a consensus price target of $3.20, indicating a potential upside of 12.08%. Given Ultrapar Participações’ stronger consensus rating and higher possible upside, analysts plainly believe Ultrapar Participações is more favorable than Cheniere Energy Partners.

Summary

Ultrapar Participações beats Cheniere Energy Partners on 9 of the 17 factors compared between the two stocks.

About Cheniere Energy Partners

Cheniere Energy Partners, L.P., through its subsidiaries, provides liquefied natural gas (LNG) to integrated energy companies, utilities, and energy trading companies worldwide. The company owns and operates natural gas liquefaction and export facility at the Sabine Pass LNG Terminal located in Cameron Parish, Louisiana. It also owns a natural gas supply pipeline that interconnects the Sabine Pass LNG terminal with various interstate pipelines. The company was founded in 2003 and is headquartered in Houston, Texas. Cheniere Energy Partners, L.P. is a subsidiary of Cheniere Energy, Inc.

About Ultrapar Participações

Ultrapar Participações S.A., through its subsidiaries, operates in the energy and infrastructure business in Brazil. The company distributes liquefied petroleum gas to residential, commercial, and industrial consumers, in addition to renewable electricity and compressed natural gas. It also operates in the distribution and marketing of gasoline, ethanol, diesel, fuel oil, kerosene, natural gas for vehicles, and lubricants; and holds AmPm convenience stores and provides JetOil lubricant services. In addition, the company operates liquid bulk storage terminals. Further, it offers digital payments services, combining the abastece aí app and the loyalty program Km de Vantagens. It also exports its products and services to customers in Europe, Singapore, the United States, Canada, other Latin American countries, and internationally. The company was founded in 1937 and is headquartered in São Paulo, Brazil.