International Seaways (NYSE:INSW) & Cheniere Energy Partners (NYSE:CQP) Critical Contrast

Cheniere Energy Partners (NYSE:CQP) and International Seaways (NYSE:INSW) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.

Analyst Recommendations

This is a summary of recent recommendations for Cheniere Energy Partners and International Seaways, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheniere Energy Partners	5	3	1	0	1.56
International Seaways	0	2	5	0	2.71

Cheniere Energy Partners currently has a consensus target price of $62.00, suggesting a potential downside of 1.91%. International Seaways has a consensus target price of $102.25, suggesting a potential downside of 3.34%. Given Cheniere Energy Partners’ higher possible upside, equities research analysts plainly believe Cheniere Energy Partners is more favorable than International Seaways.

Institutional and Insider Ownership

46.5% of Cheniere Energy Partners shares are owned by institutional investors. Comparatively, 67.3% of International Seaways shares are owned by institutional investors. 1.7% of International Seaways 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 Partners pays an annual dividend of $3.10 per share and has a dividend yield of 4.9%. International Seaways pays an annual dividend of $20.20 per share and has a dividend yield of 19.1%. Cheniere Energy Partners pays out 56.3% of its earnings in the form of a dividend. International Seaways pays out 129.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheniere Energy Partners	$11.50 billion	2.66	$2.99 billion	$5.51	11.47
International Seaways	$843.30 million	6.21	$309.26 million	$15.64	6.76

Cheniere Energy Partners has higher revenue and earnings than International Seaways. International Seaways 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cheniere Energy Partners	27.31%	1,121.60%	14.59%
International Seaways	61.98%	31.75%	23.54%

Risk & Volatility

Cheniere Energy Partners has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500. Comparatively, International Seaways has a beta of -0.13, indicating that its share price is 113% less volatile than the S&P 500.

Summary

International Seaways beats Cheniere Energy Partners on 9 of the 16 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 International Seaways

International Seaways, Inc. owns and operates a fleet of oceangoing vessels for the transportation of crude oil and petroleum products in the international flag trade. It operates in two segments: Crude Tankers and Product Carriers. As of December 31, 2023, the company owned a fleet of 73 vessels. It serves independent and state-owned oil companies, oil traders, refinery operators, and international government entities. The company was formerly known as OSG International, Inc. and changed its name to International Seaways, Inc. in October 2016. International Seaways, Inc. was incorporated in 1999 and is headquartered in New York, New York.