Granite Ridge Resources (NYSE:GRNT) versus Cheniere Energy (NYSE:LNG) Head to Head Comparison

Cheniere Energy (NYSE:LNG) and Granite Ridge Resources (NYSE:GRNT) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Institutional and Insider Ownership

87.3% of Cheniere Energy shares are owned by institutional investors. Comparatively, 31.6% of Granite Ridge Resources shares are owned by institutional investors. 0.5% of Cheniere Energy shares are owned by insiders. Comparatively, 8.6% of Granite Ridge Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cheniere Energy	7.23%	38.95%	9.34%
Granite Ridge Resources	-7.13%	4.99%	2.65%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheniere Energy	$20.40 billion	2.66	$5.33 billion	$6.08	42.54
Granite Ridge Resources	$455.64 million	1.33	$24.35 million	($0.25)	-18.38

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

Volatility and Risk

Cheniere Energy has a beta of -0.01, meaning that its stock price is 101% less volatile than the S&P 500. Comparatively, Granite Ridge Resources has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500.

Dividends

Cheniere Energy pays an annual dividend of $2.22 per share and has a dividend yield of 0.9%. Granite Ridge Resources pays an annual dividend of $0.44 per share and has a dividend yield of 9.6%. Cheniere Energy pays out 36.5% of its earnings in the form of a dividend. Granite Ridge Resources pays out -176.0% 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. Granite Ridge Resources is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings for Cheniere Energy and Granite Ridge Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheniere Energy	0	2	16	3	3.05
Granite Ridge Resources	1	1	2	0	2.25

Cheniere Energy presently has a consensus price target of $298.47, suggesting a potential upside of 15.40%. Granite Ridge Resources has a consensus price target of $10.00, suggesting a potential upside of 117.63%. Given Granite Ridge Resources’ higher possible upside, analysts clearly believe Granite Ridge Resources is more favorable than Cheniere Energy.

Summary

Cheniere Energy beats Granite Ridge Resources on 12 of the 17 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 Granite Ridge Resources

Granite Ridge Resources, Inc. operates as a non-operated oil and gas exploration and production company. It owns a portfolio of wells and acreage across the Permian and other unconventional basins in the United States. Granite Ridge Resources, Inc. is based in Dallas, Texas.