Head to Head Analysis: South Bow (SOBO) and Its Rivals

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

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%

Insider & Institutional Ownership

50.2% of shares of all “Pipelines, Except Natural Gas” companies are owned by institutional investors. 2.6% of shares of all “Pipelines, Except Natural Gas” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

South Bow pays an annual dividend of $2.00 per share and has a dividend yield of 8.6%. 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.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
South Bow	N/A	N/A	13.29
South Bow Competitors	$10.59 billion	$805.98 million	15.00

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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for South Bow and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
South Bow	2	3	1	2	2.38
South Bow Competitors	166	1638	1800	170	2.52

South Bow currently has a consensus price target of $25.00, indicating a potential upside of 7.53%. As a group, “Pipelines, Except Natural Gas” companies have a potential upside of 17.76%. Given South Bow’s competitors stronger consensus rating and higher probable upside, analysts clearly believe South Bow has less favorable growth aspects than its competitors.

Summary

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

About South Bow

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.