Contrasting South Bow (SOBO) & The Competition

South Bow (NYSE:SOBO) is one of 21 public companies in the “Pipelines, Except Natural Gas” industry, but how does it contrast to its competitors? We will compare South Bow to related companies based on the strength of its risk, earnings, profitability, analyst recommendations, institutional ownership, dividends and valuation.

Profitability

This table compares South Bow and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
South Bow	N/A	N/A	N/A
South Bow Competitors	29.09%	23.03%	9.57%

Valuation and Earnings

This table compares South Bow and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
South Bow	N/A	N/A	13.62
South Bow Competitors	$10.59 billion	$805.98 million	14.97

South Bow’s competitors have higher revenue and earnings than South Bow. South Bow is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

50.2% of shares of all “Pipelines, Except Natural Gas” companies are held by institutional investors. 2.6% of shares of all “Pipelines, Except Natural Gas” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for South Bow and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
South Bow	2	3	1	2	2.38
South Bow Competitors	166	1636	1799	169	2.52

South Bow presently has a consensus target price of $25.00, suggesting a potential upside of 4.87%. As a group, “Pipelines, Except Natural Gas” companies have a potential upside of 18.60%. Given South Bow’s competitors stronger consensus rating and higher possible upside, analysts clearly believe South Bow has less favorable growth aspects than its competitors.

Dividends

South Bow pays an annual dividend of $2.00 per share and has a dividend yield of 8.4%. South Bow pays out 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Pipelines, Except Natural Gas” companies pay a dividend yield of 7.6% and pay out 117.8% of their earnings in the form of a dividend. South Bow is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Summary

South Bow competitors beat South Bow on 10 of the 13 factors compared.

South Bow Company Profile

South Bow Corp is a strategic liquids pipeline company. It is a new liquids-focused midstream infrastructure company. South Bow Corp is based in Canada.