Financial Contrast: Legacy Reserves (OTCMKTS:LGCYQ) versus Cheniere Energy (NYSE:LNG)

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

Profitability

This table compares Cheniere Energy and Legacy Reserves’ 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%
Legacy Reserves	N/A	N/A	N/A

Earnings & Valuation

This table compares Cheniere Energy and Legacy Reserves”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheniere Energy	$15.70 billion	2.71	$3.25 billion	$17.95	11.00
Legacy Reserves	N/A	N/A	N/A	N/A	N/A

Cheniere Energy has higher revenue and earnings than Legacy Reserves.

Insider & Institutional Ownership

87.3% of Cheniere Energy shares are held by institutional investors. 0.3% of Cheniere Energy shares are held by insiders. Comparatively, 0.8% of Legacy Reserves shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Cheniere Energy and Legacy Reserves, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheniere Energy	0	3	16	1	2.90
Legacy Reserves	0	0	0	0	0.00

Cheniere Energy presently has a consensus price target of $267.53, suggesting a potential upside of 35.49%. Given Cheniere Energy’s stronger consensus rating and higher possible upside, equities analysts plainly believe Cheniere Energy is more favorable than Legacy Reserves.

Summary

Cheniere Energy beats Legacy Reserves on 9 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 Legacy Reserves

Legacy Reserves Inc., an independent energy company, engages in the acquisition, development, and production of oil and natural gas properties in the United States. It focuses on the horizontal development of unconventional plays in the Permian Basin and the management of shallow-decline oil and natural gas wells in the regions of Permian Basin, East Texas, Rocky Mountain, and Mid-Continent. As of December 31, 2018, the company had proved reserves of approximately 164.9 million barrels of crude oil equivalent covering natural gas, as well as oil and natural gas liquids. Legacy Reserves Inc. was founded in 2005 and is based in Midland, Texas. On June 18, 2019, Legacy Reserves Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.