Cheniere Energy (NYSE:LNG) versus HKN (OTCMKTS:HKNI) Head-To-Head Review

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

Analyst Recommendations

This is a summary of current recommendations for Cheniere Energy and HKN, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheniere Energy	0	1	16	2	3.05
HKN	0	0	0	0	0.00

Cheniere Energy presently has a consensus price target of $267.80, indicating a potential upside of 26.25%. Given Cheniere Energy’s stronger consensus rating and higher possible upside, research analysts clearly believe Cheniere Energy is more favorable than HKN.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheniere Energy	$18.96 billion	2.46	$3.25 billion	$17.95	11.82
HKN	N/A	N/A	N/A	N/A	N/A

Cheniere Energy has higher revenue and earnings than HKN.

Insider and Institutional Ownership

87.3% of Cheniere Energy shares are held by institutional investors. 0.3% of Cheniere Energy shares are held by insiders. Comparatively, 0.1% of HKN shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Cheniere Energy and HKN’s 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%
HKN	N/A	N/A	N/A

Summary

Cheniere Energy beats HKN on 10 of the 10 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 HKN

HKN, Inc. operates as an independent energy company. The company owns an oilfield emulsion breaking technology that purifies oilfield emulsions by breaking and separating the emulsions into oil, water, and solids. It also holds non-operated oil and gas leases and mineral interests in properties located in the Bakken and Niobrara shale oil plays; and rights to acreage in the Permian Basin of Texas. The company was founded in 1973 and is based in Southlake, Texas.