Reviewing Cheniere Energy Partners (NYSE:CQP) & Paramount Resources (OTCMKTS:PRMRF)

Cheniere Energy Partners (NYSE:CQP) and Paramount Resources (OTCMKTS:PRMRF) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.

Analyst Ratings

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

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

Cheniere Energy Partners currently has a consensus target price of $62.00, indicating a potential downside of 2.59%. Given Cheniere Energy Partners’ higher probable upside, analysts plainly believe Cheniere Energy Partners is more favorable than Paramount Resources.

Dividends

Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 4.9%. Paramount Resources pays an annual dividend of $0.43 per share and has a dividend yield of 1.9%. Cheniere Energy Partners pays out 56.3% of its earnings in the form of a dividend. Paramount Resources pays out 75.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cheniere Energy Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

46.5% of Cheniere Energy Partners shares are owned by institutional investors. Comparatively, 4.1% of Paramount Resources shares are owned by institutional investors. 36.3% of Paramount Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Cheniere Energy Partners and Paramount Resources’ 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%
Paramount Resources	12.52%	4.31%	3.20%

Volatility and Risk

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

Valuation and Earnings

This table compares Cheniere Energy Partners and Paramount Resources”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheniere Energy Partners	$10.76 billion	2.86	$2.99 billion	$5.51	11.55
Paramount Resources	$692.73 million	4.74	$922.32 million	$0.57	39.47

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 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 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.