Head-To-Head Contrast: Antero Resources (NYSE:AR) vs. Cheniere Energy (NYSE:LNG)

Antero Resources (NYSE:AR) and Cheniere Energy (NYSE:LNG) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitability, risk, analyst recommendations and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Antero Resources	10.13%	6.48%	3.65%
Cheniere Energy	21.05%	37.83%	8.79%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Antero Resources	$4.33 billion	2.26	$57.23 million	$1.57	20.14
Cheniere Energy	$15.70 billion	3.18	$3.25 billion	$17.13	13.28

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Antero Resources and Cheniere Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Antero Resources	0	6	10	1	2.71
Cheniere Energy	0	1	17	2	3.05

Antero Resources presently has a consensus target price of $44.31, indicating a potential upside of 40.14%. Cheniere Energy has a consensus target price of $263.60, indicating a potential upside of 15.84%. Given Antero Resources’ higher possible upside, research analysts clearly believe Antero Resources is more favorable than Cheniere Energy.

Volatility and Risk

Antero Resources has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, Cheniere Energy has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.

Institutional and Insider Ownership

83.0% of Antero Resources shares are owned by institutional investors. Comparatively, 87.3% of Cheniere Energy shares are owned by institutional investors. 6.3% of Antero Resources shares are owned by company insiders. Comparatively, 0.3% of Cheniere Energy shares are owned by company 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 Antero Resources on 11 of the 15 factors compared between the two stocks.

About Antero Resources

Antero Resources Corporation, an independent oil and natural gas company, engages in the development, production, exploration, and acquisition of natural gas, natural gas liquids (NGLs), and oil properties in the United States. It operates in three segments: Exploration and Development; Marketing; and Equity Method Investment in Antero Midstream. As of December 31, 2023, the company had approximately 515,000 net acres in the Appalachian Basin; and approximately 172,000 net acres in the Upper Devonian Shale. Its gathering and compression systems also comprise 631 miles of gas gathering pipelines in the Appalachian Basin. The company was formerly known as Antero Resources Appalachian Corporation and changed its name to Antero Resources Corporation in June 2013. Antero Resources Corporation was incorporated in 2002 and is headquartered in Denver, Colorado.

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.