New Jersey Resources (NYSE:NJR – Get Free Report) and Cheniere Energy Partners (NYSE:CQP – Get Free Report) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.
Dividends
New Jersey Resources pays an annual dividend of $1.80 per share and has a dividend yield of 3.9%. Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 5.9%. New Jersey Resources pays out 61.6% of its earnings in the form of a dividend. Cheniere Energy Partners pays out 67.0% 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. New Jersey Resources has increased its dividend for 29 consecutive years.
Valuation and Earnings
This table compares New Jersey Resources and Cheniere Energy Partners”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Jersey Resources | $1.80 billion | 2.58 | $289.77 million | $2.92 | 15.93 |
| Cheniere Energy Partners | $8.93 billion | 2.83 | $4.25 billion | $4.63 | 11.28 |
Volatility and Risk
New Jersey Resources has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Cheniere Energy Partners has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and target prices for New Jersey Resources and Cheniere Energy Partners, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Jersey Resources | 0 | 3 | 1 | 1 | 2.60 |
| Cheniere Energy Partners | 2 | 0 | 0 | 0 | 1.00 |
New Jersey Resources currently has a consensus price target of $51.00, suggesting a potential upside of 9.65%. Cheniere Energy Partners has a consensus price target of $50.50, suggesting a potential downside of 3.29%. Given New Jersey Resources’ stronger consensus rating and higher possible upside, analysts plainly believe New Jersey Resources is more favorable than Cheniere Energy Partners.
Institutional & Insider Ownership
71.0% of New Jersey Resources shares are held by institutional investors. Comparatively, 46.5% of Cheniere Energy Partners shares are held by institutional investors. 0.7% of New Jersey Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares New Jersey Resources and Cheniere Energy Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Jersey Resources | 16.13% | 13.54% | 4.28% |
| Cheniere Energy Partners | 31.28% | -328.60% | 13.93% |
Summary
New Jersey Resources beats Cheniere Energy Partners on 10 of the 18 factors compared between the two stocks.
About New Jersey Resources
New Jersey Resources Corporation, an energy services holding company, distributes natural gas. The company operates through four segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services, and Storage and Transportation. The Natural Gas Distribution segment offers regulated natural gas utility services to approximately 576,000 customers in Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey; provides capacity and storage management services; and participates in the off-system sales and capacity release markets. The Clean Energy Ventures segment invests in, owns, and operates clean energy projects, including commercial and residential solar installation situated in New Jersey, Rhode Island, New York, Connecticut, Michigan, and Indiana. The Energy Services segment maintains and operates natural gas transportation and storage capacity contracts, as well as provides physical wholesale energy, retail energy and energy management services in the United States and Canada. The Storage and Transportation segment invests in invests in energy-related ventures. It provides heating, ventilation, and cooling services; sales and installation of appliances; offers solar equipment installation, and plumbing repair and installation services; and holds commercial real estate properties. The company was incorporated in 1981 and is headquartered in Wall, New Jersey.
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.
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