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 $66.1B against $57.1B — 1.2× the size. Energy Transfer LP trades at the lower P/E: 12.6× against 19.4×. Energy Transfer LP grew revenue faster over the last twelve months: 56.1% against 22.5%. Cheniere Energy, Inc. has the higher net margin (13.0% vs 4.20%) and the higher return on invested capital (12.0% vs 6.07%). Both pay a dividend; Energy Transfer LP yields more (8.78% vs 0.79%). 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 12.64 19.44 11.68
P/S 0.53 2.49 2.39
P/B 1.40 4.83 1.68
Price to free cash flow 9.91 15.26 8.52
EV/EBITDA 7.95 9.89 9.03
EV/Sales 1.08 3.43 3.43
Earnings yield 7.91% 5.14% 7.78%
Free cash flow yield 10.09% 6.55% 7.11%

Profitability

Metric ET LNG Oil & Gas Midstream median
Gross margin 21.28% 36.44% 54.87%
Operating margin 9.17% 28.08% 34.73%
Net margin 4.20% 13.03% 20.12%
Free cash flow margin 10.90% 16.31% 14.43%
Return on equity 11.73% 25.97% 11.73%
Return on assets 3.75% 6.44% 4.43%
Return on invested capital 6.07% 12.04% 6.10%

Growth

Metric ET LNG Oil & Gas Midstream median
Revenue growth (TTM) 56.13% 22.47% 14.88%
EPS growth (last fiscal year) (5.47%) 69.93% (7.78%)
Revenue growth, 5-year CAGR 17.04% 16.38% 10.05%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ET LNG Oil & Gas Midstream median
Debt to equity 1.39 2.00 0.77
Current ratio 1.16 0.90 1.19
Net debt to EBITDA 4.56 2.03 3.46

Dividend

Metric ET LNG Oil & Gas Midstream median
Dividend yield 8.78% 0.79% 4.94%
Payout ratio 1.11 0.15 0.73

Size

Metric ET LNG Oil & Gas Midstream median
Market cap 66.08b 57.09b 3.56b

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