Financial Survey: Expand Energy (NASDAQ:EXE) versus New Fortress Energy (NASDAQ:NFE)

Expand Energy (NASDAQ:EXE – Get Free Report) and New Fortress Energy (NASDAQ:NFE – Get Free Report) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Earnings & Valuation

This table compares Expand Energy and New Fortress Energy”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Expand Energy $12.12 billion 1.78 $1.82 billion $11.58 8.07
New Fortress Energy $1.27 billion 0.02 -$1.84 billion ($135.00) -0.03

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

Dividends

Expand Energy pays an annual dividend of $2.30 per share and has a dividend yield of 2.5%. New Fortress Energy pays an annual dividend of $0.10 per share and has a dividend yield of 2.4%. Expand Energy pays out 19.9% of its earnings in the form of a dividend. New Fortress Energy pays out -0.1% 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.

Institutional & Insider Ownership

97.9% of Expand Energy shares are owned by institutional investors. Comparatively, 58.6% of New Fortress Energy shares are owned by institutional investors. 0.2% of Expand Energy shares are owned by insiders. Comparatively, 29.4% of New Fortress Energy shares are owned by 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.

Risk & Volatility

Expand Energy has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500. Comparatively, New Fortress Energy has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Expand Energy and New Fortress Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Expand Energy 0 5 15 3 2.91
New Fortress Energy 1 1 0 0 1.50

Expand Energy presently has a consensus target price of $122.89, indicating a potential upside of 31.56%. Given Expand Energy’s stronger consensus rating and higher possible upside, equities analysts plainly believe Expand Energy is more favorable than New Fortress Energy.

Profitability

This table compares Expand Energy and New Fortress Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Expand Energy 20.46% 10.33% 6.89%
New Fortress Energy -149.40% -795.34% -17.27%

Summary

Expand Energy beats New Fortress Energy on 14 of the 17 factors compared between the two stocks.

About Expand Energy

(Get Free Report)

Expand Energy Corporation is an independent natural gas producer principally in the United States. Expand Energy Corporation, formerly known as Chesapeake Energy Corporation, is based in OKLAHOMA CITY.

About New Fortress Energy

(Get Free Report)

New Fortress Energy Inc. operates as an integrated gas-to-power energy infrastructure company that provides energy and development services to end-users worldwide. The company operates in two segments, Terminals and Infrastructure, and Ships. The Terminals and Infrastructure segment engages in the natural gas procurement and liquefaction; and shipping, logistics, facilities and conversion, or development of natural gas-fired power generation. The Ships segment offers floating storage and regasification units (FRSU) and liquefied natural gas (LNG) carriers which are leased to customers under long-term or spot arrangements. The company operates LNG storage and regasification facility at the Port of Montego Bay, Jamaica; marine LNG storage and regasification facility in Old Harbour, Jamaica; Dual-fired combined heat and power facility in Clarendon, Jamaica; landed micro-fuel handling facility in San Juan, Puerto Rico; and LNG receiving facility and gas-fired power plant in Baja Califrnia Sur, Mexico, as well as a Miami facility. New Fortress Energy Inc. was founded in 1998 and is based in New York, New York.

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