Comparing Cheniere Energy Partners (NYSE:CQP) and Paramount Resources (OTCMKTS:PRMRF)

Paramount Resources (OTCMKTS:PRMRF) 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, valuation, earnings, institutional ownership, profitability and dividends.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Paramount Resources and Cheniere Energy Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paramount Resources	0	3	4	1	2.75
Cheniere Energy Partners	5	3	1	0	1.56

Cheniere Energy Partners has a consensus target price of $62.00, suggesting a potential downside of 1.04%. Given Cheniere Energy Partners’ higher probable upside, analysts clearly believe Cheniere Energy Partners is more favorable than Paramount Resources.

Risk & Volatility

Paramount Resources has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Cheniere Energy Partners has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500.

Dividends

Paramount Resources pays an annual dividend of $0.42 per share and has a dividend yield of 1.8%. Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 4.9%. Paramount Resources pays out 73.7% of its earnings in the form of a dividend. Cheniere Energy Partners pays out 56.3% 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. Cheniere Energy Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

4.1% of Paramount Resources shares are held by institutional investors. Comparatively, 46.5% of Cheniere Energy Partners shares are held by institutional investors. 36.3% of Paramount Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Paramount Resources	12.52%	4.31%	3.20%
Cheniere Energy Partners	27.31%	1,121.60%	14.59%

Earnings and Valuation

This table compares Paramount Resources and Cheniere Energy Partners”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paramount Resources	$692.73 million	4.93	$922.32 million	$0.57	41.05
Cheniere Energy Partners	$11.50 billion	2.64	$2.99 billion	$5.51	11.37

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

Summary

Cheniere Energy Partners beats Paramount Resources on 10 of the 17 factors compared between the two stocks.

About Paramount Resources

Paramount Resources Ltd. explores for and develops conventional and unconventional petroleum and natural gas reserves and resources in Canada. The company holds interests in the Karr and Wapiti Montney properties covering an area of 109,000 net acres located south of the city of Grande Prairie, Alberta; Kaybob North Duvernay development and natural gas producing properties covering an area of 124,000 net acres located in west-central Alberta; and Willesden Green Duvernay development in central Alberta and shale gas producing properties in the Horn River Basin in northeast British Columbia covering an area of 249,000 net acres. The company was founded in 1976 and is based 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.