Financial Contrast: Cheniere Energy Partners (NYSE:CQP) & Brookfield Renewable (NYSE:BEPC)

Brookfield Renewable (NYSE:BEPC) and Cheniere Energy Partners (NYSE:CQP) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of recent ratings for Brookfield Renewable and Cheniere Energy Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield Renewable	1	1	3	0	2.40
Cheniere Energy Partners	6	1	0	0	1.14

Brookfield Renewable currently has a consensus target price of $40.00, indicating a potential upside of 1.77%. Cheniere Energy Partners has a consensus target price of $53.33, indicating a potential downside of 6.65%. Given Brookfield Renewable’s stronger consensus rating and higher probable upside, analysts plainly believe Brookfield Renewable is more favorable than Cheniere Energy Partners.

Valuation & Earnings

This table compares Brookfield Renewable and Cheniere Energy Partners”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield Renewable	$5.88 billion	0.97	$236.00 million	($0.89)	-44.16
Cheniere Energy Partners	$8.70 billion	3.18	$2.51 billion	$3.84	14.88

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brookfield Renewable	-34.58%	-12.74%	-3.20%
Cheniere Energy Partners	22.54%	-591.00%	13.64%

Volatility and Risk

Brookfield Renewable has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Cheniere Energy Partners has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.

Institutional and Insider Ownership

75.1% of Brookfield Renewable shares are owned by institutional investors. Comparatively, 46.6% of Cheniere Energy Partners shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Brookfield Renewable pays an annual dividend of $1.49 per share and has a dividend yield of 3.8%. Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 5.4%. Brookfield Renewable pays out -167.4% of its earnings in the form of a dividend. Cheniere Energy Partners pays out 80.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Renewable has increased its dividend for 1 consecutive years.

About Brookfield Renewable

Brookfield Renewable Corporation owns and operates a portfolio of renewable power and sustainable solution assets primarily in the United States, Europe, Colombia, and Brazil. It operates hydroelectric, wind, solar, and distributed energy and sustainable solutions with an installed capacity of approximately 19,161 megawatts. The company was incorporated in 2019 and is headquartered in New York, New York. Brookfield Renewable Corporation operates as a subsidiary of Brookfield BRP Holdings (Canada) Inc.

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.