Analyzing AER Energy Resources (OTCMKTS:AERN) & Cheniere Energy (NYSE:LNG)

AER Energy Resources (OTCMKTS:AERN) and Cheniere Energy (NYSE:LNG) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Earnings & Valuation

This table compares AER Energy Resources and Cheniere Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AER Energy Resources	N/A	N/A	N/A	N/A	N/A
Cheniere Energy	$15.70 billion	3.24	$3.25 billion	$17.13	13.52

Cheniere Energy has higher revenue and earnings than AER Energy Resources.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AER Energy Resources	N/A	N/A	N/A
Cheniere Energy	21.05%	37.83%	8.79%

Institutional and Insider Ownership

87.3% of Cheniere Energy shares are owned by institutional investors. 61.0% of AER Energy Resources shares are owned by company insiders. Comparatively, 0.3% of Cheniere Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for AER Energy Resources and Cheniere Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AER Energy Resources	0	0	0	0	0.00
Cheniere Energy	0	1	16	1	3.00

Cheniere Energy has a consensus target price of $263.60, suggesting a potential upside of 13.78%. Given Cheniere Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Cheniere Energy is more favorable than AER Energy Resources.

Risk and Volatility

AER Energy Resources has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Cheniere Energy has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.

Summary

Cheniere Energy beats AER Energy Resources on 9 of the 11 factors compared between the two stocks.

About AER Energy Resources

AER Energy Resources, Inc., through its subsidiaries, engages in acquiring, managing, and operating oil and gas properties in North America. The company is also involved in the recycling of used motor oil; marketing of related fuel and energy products to users, suppliers, and recycler’s; and real estate business. AER Energy Resources, Inc. was founded in 1989 and is based in Scottsdale, Arizona.

About Cheniere Energy

Cheniere Energy, Inc., an energy infrastructure company, primarily engages in the liquefied natural gas (LNG) related businesses in the United States. It owns and operates the Sabine Pass LNG terminal in Cameron Parish, Louisiana; and the Corpus Christi LNG terminal near Corpus Christi, Texas. The company also owns Creole Trail pipeline, a 94-mile natural gas supply pipeline that interconnects the Sabine Pass LNG Terminal with several interstate and intrastate pipelines; and operates Corpus Christi pipeline, a 21.5-mile natural gas supply pipeline that interconnects the Corpus Christi LNG terminal with various interstate and intrastate natural gas pipelines. It is also involved in the LNG and natural gas marketing business. The company was incorporated in 1983 and is headquartered in Houston, Texas.