Critical Review: Cheniere Energy Partners (NYSE:CQP) and FuelCell Energy (NASDAQ:FCEL)

Cheniere Energy Partners (NYSE:CQP) and FuelCell Energy (NASDAQ:FCEL) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.

Analyst Recommendations

This is a breakdown of recent ratings for Cheniere Energy Partners and FuelCell Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheniere Energy Partners	5	3	1	0	1.56
FuelCell Energy	2	7	0	0	1.78

Cheniere Energy Partners currently has a consensus target price of $60.43, indicating a potential downside of 4.11%. FuelCell Energy has a consensus target price of $8.24, indicating a potential upside of 23.93%. Given FuelCell Energy’s stronger consensus rating and higher possible upside, analysts plainly believe FuelCell Energy is more favorable than Cheniere Energy Partners.

Institutional & Insider Ownership

46.6% of Cheniere Energy Partners shares are held by institutional investors. Comparatively, 42.8% of FuelCell Energy shares are held by institutional investors. 5.5% of FuelCell Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Cheniere Energy Partners has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500. Comparatively, FuelCell Energy has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.

Valuation & Earnings

This table compares Cheniere Energy Partners and FuelCell Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheniere Energy Partners	$10.76 billion	2.84	$2.99 billion	$5.17	12.19
FuelCell Energy	$158.16 million	2.23	-$187.90 million	($6.91)	-0.96

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cheniere Energy Partners	27.76%	-1,446.48%	13.85%
FuelCell Energy	-107.51%	-17.76%	-12.54%

Summary

Cheniere Energy Partners beats FuelCell Energy on 9 of the 14 factors compared between the two stocks.

About Cheniere Energy Partners

Cheniere Energy Partners, L.P., through its subsidiaries, provides liquefied natural gas (LNG) to integrated energy companies, utilities, and energy trading companies worldwide. The company owns and operates natural gas liquefaction and export facility at the Sabine Pass LNG Terminal located in Cameron Parish, Louisiana. It also owns a natural gas supply pipeline that interconnects the Sabine Pass LNG terminal with various interstate pipelines. The company was founded in 2003 and is headquartered in Houston, Texas. Cheniere Energy Partners, L.P. is a subsidiary of Cheniere Energy, Inc.

About FuelCell Energy

FuelCell Energy, Inc., together with its subsidiaries, manufactures and sells stationary fuel cell and electrolysis platforms that decarbonize power and produce hydrogen. The company provides various configurations and applications of its platform, including on-site power, utility grid support, and microgrid, as well as distributed hydrogen; solid oxide-based electrolysis; solutions for long duration hydrogen-based energy storage and electrolysis technology; and carbon capture, separation, and utilization systems. It also offers technology to produce electricity, heat, hydrogen, and water. In addition, the company provides turn-key solutions, including development, engineering, procurement, construction, interconnection, and operation services. It serves various markets, including utilities and independent power producers, industrial and process applications, education and health care, data centers and communication, wastewater treatment, government, commercial and hospitality, microgrids, manufacturing, industrial hydrogen, port, oil and gas, wind and solar projects, food and beverage, hydrogen for mobility and material handling, and hydrogen fuel for heat, as well as engineering, procurement, and construction firms. The company primarily operates in the United States, South Korea, and Europe. FuelCell Energy, Inc. was founded in 1969 and is headquartered in Danbury, Connecticut.