Reviewing Cheniere Energy (NYSE:LNG) & Permian Resources (NYSE:PR)

Cheniere Energy (NYSE:LNG) and Permian Resources (NYSE:PR) are both large-cap energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Earnings & Valuation

This table compares Cheniere Energy and Permian Resources”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	3.25	$3.25 billion	$17.13	13.55
Permian Resources	$5.00 billion	2.01	$984.70 million	$1.54	8.15

Cheniere Energy has higher revenue and earnings than Permian Resources. Permian 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.

Insider & Institutional Ownership

87.3% of Cheniere Energy shares are owned by institutional investors. Comparatively, 91.8% of Permian Resources shares are owned by institutional investors. 0.3% of Cheniere Energy shares are owned by insiders. Comparatively, 12.8% of Permian Resources 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.

Analyst Recommendations

This is a summary of current ratings and target prices for Cheniere Energy and Permian Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheniere Energy	0	1	17	1	3.00
Permian Resources	1	0	15	2	3.00

Cheniere Energy currently has a consensus target price of $263.60, suggesting a potential upside of 13.55%. Permian Resources has a consensus target price of $18.63, suggesting a potential upside of 48.35%. Given Permian Resources’ higher possible upside, analysts clearly believe Permian Resources is more favorable than Cheniere Energy.

Volatility & Risk

Cheniere Energy has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, Permian Resources has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cheniere Energy	21.05%	37.83%	8.79%
Permian Resources	22.41%	10.91%	6.83%

Dividends

Cheniere Energy pays an annual dividend of $2.00 per share and has a dividend yield of 0.9%. Permian Resources pays an annual dividend of $0.60 per share and has a dividend yield of 4.8%. Cheniere Energy pays out 11.7% of its earnings in the form of a dividend. Permian Resources pays out 39.0% 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. Permian Resources has increased its dividend for 1 consecutive years. Permian Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Cheniere Energy beats Permian Resources on 9 of the 17 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 Permian Resources

Permian Resources Corporation, an independent oil and natural gas company, focuses on the development of crude oil and related liquids-rich natural gas reserves in the United States. The company’s assets primarily focus on the Delaware Basin, a sub-basin of the Permian Basin. Its properties consist of acreage blocks in West Texas, Eddy County, Lea County, and New Mexico. The company was formerly known as Centennial Resource Development, Inc. and changed its name to Permian Resources Corporation in September 2022. Permian Resources Corporation was incorporated in 2015 and is headquartered in Midland, Texas.