ConocoPhillips (NYSE:COP) & Cheniere Energy (NYSE:LNG) Head-To-Head Contrast

Cheniere Energy (NYSE:LNG) and ConocoPhillips (NYSE:COP) are both large-cap energy companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Insider & Institutional Ownership

87.3% of Cheniere Energy shares are owned by institutional investors. Comparatively, 82.4% of ConocoPhillips shares are owned by institutional investors. 0.6% of Cheniere Energy shares are owned by insiders. Comparatively, 0.1% of ConocoPhillips shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Cheniere Energy pays an annual dividend of $2.22 per share and has a dividend yield of 0.8%. ConocoPhillips pays an annual dividend of $3.36 per share and has a dividend yield of 2.6%. Cheniere Energy pays out 16.5% of its earnings in the form of a dividend. ConocoPhillips pays out 44.4% 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Cheniere Energy and ConocoPhillips, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheniere Energy	0	3	15	2	2.95
ConocoPhillips	2	8	17	1	2.61

Cheniere Energy presently has a consensus target price of $305.65, indicating a potential upside of 13.86%. ConocoPhillips has a consensus target price of $141.24, indicating a potential upside of 11.10%. Given Cheniere Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Cheniere Energy is more favorable than ConocoPhillips.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cheniere Energy	13.57%	29.80%	7.05%
ConocoPhillips	14.22%	14.72%	7.77%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheniere Energy	$19.98 billion	2.78	$5.33 billion	$13.43	19.99
ConocoPhillips	$61.55 billion	2.48	$7.99 billion	$7.56	16.82

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

Summary

Cheniere Energy beats ConocoPhillips on 10 of the 16 factors compared between the two stocks.

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.

About ConocoPhillips

ConocoPhillips explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids in the United States, Canada, China, Libya, Malaysia, Norway, the United Kingdom, and internationally. The company's portfolio includes unconventional plays in North America; conventional assets in North America, Europe, Asia, and Australia; global LNG developments; oil sands assets in Canada; and an inventory of global exploration prospects. ConocoPhillips was founded in 1917 and is headquartered in Houston, Texas.