Cheniere Energy Partners (NYSE:CQP) vs. Tesoro Logistics (ANDX) Head-To-Head Review

Tesoro Logistics (NYSE: ANDX) and Cheniere Energy Partners (NYSE:CQP) are both mid-cap oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Dividends

Tesoro Logistics pays an annual dividend of $3.88 per share and has a dividend yield of 8.4%. Cheniere Energy Partners does not pay a dividend. Tesoro Logistics pays out 203.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares Tesoro Logistics and Cheniere Energy Partners’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tesoro Logistics N/A N/A N/A $1.91 24.25
Cheniere Energy Partners $2.77 billion 4.97 $926.06 million N/A N/A

Cheniere Energy Partners has higher revenue and earnings than Tesoro Logistics.

Profitability

This table compares Tesoro Logistics and Cheniere Energy Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tesoro Logistics 25.07% 22.25% 6.61%
Cheniere Energy Partners 4.64% 39.76% 1.08%

Institutional & Insider Ownership

66.2% of Tesoro Logistics shares are held by institutional investors. 0.2% of Tesoro Logistics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Tesoro Logistics and Cheniere Energy Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tesoro Logistics 0 0 2 0 3.00
Cheniere Energy Partners 0 4 3 0 2.43

Tesoro Logistics presently has a consensus target price of $60.00, suggesting a potential upside of 29.53%. Cheniere Energy Partners has a consensus target price of $34.14, suggesting a potential upside of 19.97%. Given Tesoro Logistics’ stronger consensus rating and higher possible upside, analysts clearly believe Tesoro Logistics is more favorable than Cheniere Energy Partners.

Summary

Tesoro Logistics beats Cheniere Energy Partners on 7 of the 12 factors compared between the two stocks.

About Tesoro Logistics

Andeavor Logistics LP, formerly Tesoro Logistics LP, is a full-service logistics company operating in the western and mid-continent regions of the United States. The Company operates through three segments. Its Gathering segment consists of crude oil, natural gas and produced water gathering systems in the Bakken Region and Rockies Region. Its Processing segment consists of the Vermillion processing complex, the Uinta Basin processing complex, the Blacks Fork processing complex and the Emigrant Trail processing complex. Its Terminalling and Transportation segment consists of the Northwest Products Pipeline, which includes a regulated common carrier products, a regulated common carrier refined products pipeline system connecting Tesoro Corporation’s Kenai refinery to Anchorage, Alaska, and crude oil and refined products terminals and storage facilities in the western and midwestern United States; marine terminals in California; a petroleum coke handling and storage facility.

About Cheniere Energy Partners

Cheniere Energy Partners, L.P. (Cheniere Partners) is a limited partnership formed by Cheniere Energy, Inc (Cheniere). The Company operates through liquefaction and regasification operations at the Sabine Pass LNG terminal segment. Through its subsidiary, Sabine Pass Liquefaction, LLC (SPL), it is developing, constructing and operating natural gas liquefaction facilities (the Liquefaction Project) at the Sabine Pass LNG terminal located in Cameron Parish, Louisiana, on the Sabine-Neches Waterway less than four miles from the Gulf Coast. Through its subsidiary, Sabine Pass LNG, L.P., it owns and operates regasification facilities at the Sabine Pass LNG terminal, which includes existing infrastructure of five LNG storage tanks with capacity of approximately 16.9 billion cubic feet equivalent, two marine berths that can accommodate vessels with nominal capacity of up to 266,000 cubic meters and vaporizers with regasification capacity of approximately four billion cubic feet per day.

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