Enterprise Products Partners L.P. (EPD) vs Cheniere Energy, Inc. (LNG)

Enterprise Products Partners L.P. and Cheniere Energy, Inc. are both Oil & Gas Midstream companies. Enterprise Products Partners L.P. is the larger, with a market value of $80.5B against $56.8B — 1.4× the size. Enterprise Products Partners L.P. trades at the lower P/E: 12.8× against 19.9×. Cheniere Energy, Inc. grew revenue faster over the last twelve months: 17.5% against 6.78%. Cheniere Energy, Inc. has the higher net margin (13.5% vs 10.7%) and the higher return on invested capital (11.8% vs 7.68%). Both pay a dividend; Enterprise Products Partners L.P. yields more (8.06% vs 1.04%). Across the 23 metrics below, Enterprise Products Partners L.P. leads on 12 and Cheniere Energy, Inc. on 11.

Valuation

Metric EPD LNG Oil & Gas Midstream median
P/E 12.76 19.89 13.19
P/S 1.36 2.61 2.60
P/B 2.56 4.88 2.08
Price to free cash flow 19.27 20.70 10.14
EV/EBITDA 10.58 9.95 8.11
EV/Sales 1.92 3.66 3.89
Earnings yield 7.84% 5.03% 6.83%
Free cash flow yield 5.19% 4.83% 6.94%

Profitability

Metric EPD LNG Oil & Gas Midstream median
Gross margin 13.25% 38.53% 58.81%
Operating margin 13.43% 29.89% 32.14%
Net margin 10.68% 13.50% 21.16%
Free cash flow margin 7.06% 12.61% 10.15%
Return on equity 20.48% 25.52% 11.30%
Return on assets 7.84% 6.27% 5.00%
Return on invested capital 7.68% 11.80% 6.13%

Growth

Metric EPD LNG Oil & Gas Midstream median
Revenue growth (TTM) 6.78% 17.54% 15.44%
EPS growth (last fiscal year) (1.12%) 69.93% —
Revenue growth, 5-year CAGR 14.10% 16.38% 8.96%
Net income growth, 5-year CAGR 8.80% 0.00% 0.00%

Health

Metric EPD LNG Oil & Gas Midstream median
Debt to equity 1.07 2.09 0.78
Current ratio 0.93 0.87 1.19
Net debt to EBITDA 3.35 2.03 3.42

Dividend

Metric EPD LNG Oil & Gas Midstream median
Dividend yield 8.06% 1.04% 7.29%
Payout ratio — 0.04 0.64

Size

Metric EPD LNG Oil & Gas Midstream median
Market cap 80.48b 56.83b 3.61b

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