Critical Contrast: Cheniere Energy Partners (NYSE:CQP) & Alvopetro Energy (OTCMKTS:ALVOF)

Alvopetro Energy (OTCMKTS:ALVOF) and Cheniere Energy Partners (NYSE:CQP) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Volatility & Risk

Alvopetro Energy has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500. Comparatively, Cheniere Energy Partners has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alvopetro Energy	43.62%	25.76%	20.40%
Cheniere Energy Partners	24.62%	-503.86%	13.57%

Institutional and Insider Ownership

46.6% of Cheniere Energy Partners shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alvopetro Energy	$45.52 million	3.81	$16.30 million	$0.59	7.99
Cheniere Energy Partners	$8.70 billion	2.86	$2.51 billion	$4.12	12.49

Cheniere Energy Partners has higher revenue and earnings than Alvopetro Energy. Alvopetro Energy 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.

Dividends

Alvopetro Energy pays an annual dividend of $0.40 per share and has a dividend yield of 8.5%. Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 6.0%. Alvopetro Energy pays out 67.8% of its earnings in the form of a dividend. Cheniere Energy Partners pays out 75.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alvopetro Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alvopetro Energy	0	0	0	0	0.00
Cheniere Energy Partners	5	1	0	0	1.17

Cheniere Energy Partners has a consensus target price of $54.60, suggesting a potential upside of 6.13%. Given Cheniere Energy Partners’ stronger consensus rating and higher possible upside, analysts clearly believe Cheniere Energy Partners is more favorable than Alvopetro Energy.

Summary

Cheniere Energy Partners beats Alvopetro Energy on 8 of the 14 factors compared between the two stocks.

About Alvopetro Energy

Alvopetro Energy Ltd. operates as an independent upstream and midstream operator. It engages in the acquisition, exploration, development, and production of hydrocarbons. The company holds interests in the Caburé and Murucututu natural gas assets, Block 182 and 183 exploration assets, and Bom Lugar and Mãe-da-lua oil fields, which covers an area of approximately 22,166 acres in the Recôncavo basin onshore Brazil. Alvopetro Energy Ltd. was incorporated in 2013 and is headquartered in Calgary, Canada.

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.