Energy Transfer LP (ET) vs Cheniere Energy, Inc. (LNG)

Energy Transfer LP and Cheniere Energy, Inc. are both Oil & Gas Midstream companies. Energy Transfer LP is the larger, with a market value of $70.2B against $56.8B — 1.2× the size. Energy Transfer LP trades at the lower P/E: 13.7× against 19.9×. Energy Transfer LP grew revenue faster over the last twelve months: 33.3% against 17.5%. Cheniere Energy, Inc. has the higher net margin (13.5% vs 4.70%) and the higher return on invested capital (11.8% vs 5.72%). Both pay a dividend; Energy Transfer LP yields more (8.97% vs 1.04%). Across the 22 metrics below, Energy Transfer LP leads on 13 and Cheniere Energy, Inc. on 9.

Valuation

Metric ET LNG Oil & Gas Midstream median
P/E 13.73 19.89 13.19
P/S 0.65 2.61 2.60
P/B 1.47 4.88 2.08
Price to free cash flow 13.30 20.70 10.14
EV/EBITDA 8.11 9.95 8.11
EV/Sales 1.27 3.66 3.89
Earnings yield 7.28% 5.03% 6.83%
Free cash flow yield 7.52% 4.83% 6.94%

Profitability

Metric ET LNG Oil & Gas Midstream median
Gross margin 23.58% 38.53% 58.81%
Operating margin 10.04% 29.89% 32.14%
Net margin 4.70% 13.50% 21.16%
Free cash flow margin 4.87% 12.61% 10.15%
Return on equity 11.30% 25.52% 11.30%
Return on assets 3.70% 6.27% 5.00%
Return on invested capital 5.72% 11.80% 6.13%

Growth

Metric ET LNG Oil & Gas Midstream median
Revenue growth (TTM) 33.27% 17.54% 15.44%
EPS growth (last fiscal year) (5.47%) 69.93% —
Revenue growth, 5-year CAGR 17.04% 16.38% 8.96%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ET LNG Oil & Gas Midstream median
Debt to equity 1.35 2.09 0.78
Current ratio 1.16 0.87 1.19
Net debt to EBITDA 4.56 2.03 3.42

Dividend

Metric ET LNG Oil & Gas Midstream median
Dividend yield 8.97% 1.04% 7.29%
Payout ratio — 0.04 0.64

Size

Metric ET LNG Oil & Gas Midstream median
Market cap 70.21b 56.83b 3.61b

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