Analyzing Chord Energy (NASDAQ:CHRD) & Cheniere Energy (NYSE:LNG)

Cheniere Energy (NYSE:LNG) and Chord Energy (NASDAQ:CHRD) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Earnings and Valuation

This table compares Cheniere Energy and Chord Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheniere Energy	$15.70 billion	2.83	$3.25 billion	$17.95	11.51
Chord Energy	$5.25 billion	1.03	$848.63 million	$2.60	36.48

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

Dividends

Cheniere Energy pays an annual dividend of $2.22 per share and has a dividend yield of 1.1%. Chord Energy pays an annual dividend of $5.20 per share and has a dividend yield of 5.5%. Cheniere Energy pays out 12.4% of its earnings in the form of a dividend. Chord Energy pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chord Energy has increased its dividend for 1 consecutive years. Chord Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Cheniere Energy and Chord Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheniere Energy	0	3	16	1	2.90
Chord Energy	1	5	8	0	2.50

Cheniere Energy presently has a consensus price target of $265.59, suggesting a potential upside of 28.50%. Chord Energy has a consensus price target of $126.17, suggesting a potential upside of 33.02%. Given Chord Energy’s higher possible upside, analysts clearly believe Chord Energy is more favorable than Cheniere Energy.

Volatility & Risk

Cheniere Energy has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500. Comparatively, Chord Energy has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Institutional and Insider Ownership

87.3% of Cheniere Energy shares are owned by institutional investors. Comparatively, 97.8% of Chord Energy shares are owned by institutional investors. 0.3% of Cheniere Energy shares are owned by insiders. Comparatively, 0.7% of Chord Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cheniere Energy	21.12%	37.52%	9.05%
Chord Energy	3.31%	8.27%	5.36%

Summary

Cheniere Energy beats Chord Energy on 11 of the 18 factors compared between the two stocks.

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.

About Chord Energy

Chord Energy Corporation operates as an independent exploration and production company in the United States. It acquires, explores, develops, and produces crude oil, natural gas, and natural gas liquids in the Williston Basin. The company sells its products to refiners, marketers, and other purchasers that have access to nearby pipeline and rail facilities. The company was formerly known as Oasis Petroleum Inc. and changed its name to Chord Energy Corporation in July 2022. Chord Energy Corporation was founded in 2007 and is headquartered in Houston, Texas.