Cheniere Energy (NYSE:LNG) and Granite Ridge Resources (NYSE:GRNT) Financial Survey

Granite Ridge Resources (NYSE:GRNT) and Cheniere Energy (NYSE:LNG) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Analyst Ratings

This is a summary of current ratings and price targets for Granite Ridge Resources and Cheniere Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Ridge Resources	1	1	2	0	2.25
Cheniere Energy	0	2	16	3	3.05

Granite Ridge Resources currently has a consensus target price of $10.00, indicating a potential upside of 116.68%. Cheniere Energy has a consensus target price of $298.47, indicating a potential upside of 12.52%. Given Granite Ridge Resources’ higher probable upside, research analysts plainly believe Granite Ridge Resources is more favorable than Cheniere Energy.

Dividends

Granite Ridge Resources pays an annual dividend of $0.44 per share and has a dividend yield of 9.5%. Cheniere Energy pays an annual dividend of $2.22 per share and has a dividend yield of 0.8%. Granite Ridge Resources pays out -176.0% of its earnings in the form of a dividend. Cheniere Energy pays out 36.5% 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. Granite Ridge Resources is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Granite Ridge Resources and Cheniere Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Granite Ridge Resources	$450.31 million	1.35	$24.35 million	($0.25)	-18.46
Cheniere Energy	$19.98 billion	2.78	$5.33 billion	$6.08	43.63

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

Profitability

This table compares Granite Ridge Resources and Cheniere Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Granite Ridge Resources	-7.13%	4.99%	2.65%
Cheniere Energy	7.23%	38.95%	9.34%

Risk and Volatility

Granite Ridge Resources has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500. Comparatively, Cheniere Energy has a beta of -0.01, meaning that its share price is 101% less volatile than the S&P 500.

Insider and Institutional Ownership

31.6% of Granite Ridge Resources shares are owned by institutional investors. Comparatively, 87.3% of Cheniere Energy shares are owned by institutional investors. 8.6% of Granite Ridge Resources shares are owned by insiders. Comparatively, 0.6% of Cheniere Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Cheniere Energy beats Granite Ridge Resources on 12 of the 17 factors compared between the two stocks.

About Granite Ridge Resources

Granite Ridge Resources, Inc. operates as a non-operated oil and gas exploration and production company. It owns a portfolio of wells and acreage across the Permian and other unconventional basins in the United States. Granite Ridge Resources, Inc. is based in Dallas, Texas.

About Cheniere Energy

Cheniere Energy, Inc., an energy infrastructure company, primarily engages in the liquefied natural gas (LNG) related businesses in the United States. It owns and operates the Sabine Pass LNG terminal in Cameron Parish, Louisiana; and the Corpus Christi LNG terminal near Corpus Christi, Texas. The company also owns Creole Trail pipeline, a 94-mile natural gas supply pipeline that interconnects the Sabine Pass LNG Terminal with several interstate and intrastate pipelines; and operates Corpus Christi pipeline, a 21.5-mile natural gas supply pipeline that interconnects the Corpus Christi LNG terminal with various interstate and intrastate natural gas pipelines. It is also involved in the LNG and natural gas marketing business. The company was incorporated in 1983 and is headquartered in Houston, Texas.