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 $68.5B against $57.7B — 1.2× the size. Energy Transfer LP trades at the lower P/E: 13.8× against 21.4×. 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 (6.62% vs 0.77%). 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 13.82 21.44 12.77
P/S 0.65 2.81 2.36
P/B 1.48 5.26 2.09
Price to free cash flow 13.38 22.31 9.71
EV/EBITDA 8.14 10.50 8.30
EV/Sales 1.28 3.86 3.88
Earnings yield 7.23% 4.66% 7.15%
Free cash flow yield 7.47% 4.48% 6.86%

Profitability

Metric ET LNG Oil & Gas Midstream median
Gross margin 23.58% 38.53% 56.58%
Operating margin 10.04% 29.89% 34.18%
Net margin 4.70% 13.50% 22.50%
Free cash flow margin 4.87% 12.61% 13.70%
Return on equity 11.30% 25.52% 14.65%
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% 15.60%
EPS growth (last fiscal year) (5.47%) 69.93% (7.86%)
Revenue growth, 5-year CAGR 17.04% 16.38% 9.59%
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 6.62% 0.77% 4.54%
Payout ratio 0.92 0.17 0.76

Size

Metric ET LNG Oil & Gas Midstream median
Market cap 68.45b 57.65b 3.73b

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