Reviewing Cheniere Energy Inc. (LNG)’s and Summit Midstream Partners LP (NYSE:SMLP)’s results

Both Cheniere Energy Inc. (NYSEAMERICAN:LNG) and Summit Midstream Partners LP (NYSE:SMLP) compete on a level playing field in the Oil & Gas Pipelines industry. We will evaluate their performance with regards to risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Valuation & Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cheniere Energy Inc. 7.38B 2.27 531.00M 3.95 15.37
Summit Midstream Partners LP 498.58M 1.92 47.25M -0.61 0.00

Table 1 shows gross revenue, earnings per share and valuation of the two companies.

Profitability

Table 2 provides us Cheniere Energy Inc. and Summit Midstream Partners LP’s return on equity, return on assets and net margins.

Net Margins Return on Equity Return on Assets
Cheniere Energy Inc. 7.20% -44.4% 1.8%
Summit Midstream Partners LP -9.48% -4.6% -1.5%

Risk & Volatility

A 1.46 beta means Cheniere Energy Inc.’s volatility is 46.00% more than S&P 500’s volatility. Summit Midstream Partners LP has a 1.45 beta and it is 45.00% more volatile than S&P 500.

Liquidity

Cheniere Energy Inc. has a Current Ratio of 2.7 and a Quick Ratio of 2.5. Competitively, Summit Midstream Partners LP’s Current Ratio is 1 and has 1 Quick Ratio. Cheniere Energy Inc.’s better ability to pay short and long-term obligations than Summit Midstream Partners LP.

Dividends

Summit Midstream Partners LP offers an annual dividend of $2.3 per share, bundled with 18.27% dividend yield. Cheniere Energy Inc. does not pay a dividend.

Analyst Recommendations

The Ratings and Recommendations for Cheniere Energy Inc. and Summit Midstream Partners LP are featured in the next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Cheniere Energy Inc. 0 0 0 0.00
Summit Midstream Partners LP 1 1 2 2.50

Summit Midstream Partners LP on the other hand boasts of a $16 average target price and a 24.90% potential upside.

Institutional & Insider Ownership

Institutional investors held 95.2% of Cheniere Energy Inc. shares and 46.3% of Summit Midstream Partners LP shares. Cheniere Energy Inc.’s share held by insiders are 0.7%. Comparatively, Summit Midstream Partners LP has 0.3% of it’s share held by insiders.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Cheniere Energy Inc. -0.79% -1.72% -6.26% -7.81% 29.49% 12.63%
Summit Midstream Partners LP 3.74% -18.27% -21.3% -22.49% -33.94% -37.8%

For the past year Cheniere Energy Inc. had bullish trend while Summit Midstream Partners LP had bearish trend.

Summary

Cheniere Energy Inc. beats on 10 of the 13 factors Summit Midstream Partners LP.

Cheniere Energy, Inc., an energy company, engages in the liquefied natural gas (LNG) related businesses in the United States. It operates through two segments, LNG Terminal Business, and LNG and Natural Gas Marketing Business. The company owns and operates Sabine Pass LNG terminal in western Cameron Parish, Louisiana; and Corpus Christi LNG terminal near Corpus Christi, Texas. It also owns Creole Trail pipeline, a 94-mile pipeline interconnecting the Sabine Pass LNG terminal with various interstate pipelines. In addition, the company is involved in the LNG and natural gas marketing business. Cheniere Energy, Inc. was founded in 1983 and is based in Houston, Texas.