South Bow (SOBO) vs. Its Rivals Critical Contrast

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

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 endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

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 & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
South Bow	N/A	N/A	N/A
South Bow Competitors	$9.76 billion	$805.98 million	15.38

South Bow’s competitors have higher revenue and earnings than South Bow.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
South Bow	2	4	1	2	2.33
South Bow Competitors	168	1642	1806	172	2.52

South Bow presently has a consensus price target of $25.00, suggesting a potential upside of 0.83%. As a group, “Pipelines, Except Natural Gas” companies have a potential upside of 12.47%. Given South Bow’s competitors stronger consensus rating and higher possible upside, analysts plainly 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 8.1%. As a group, “Pipelines, Except Natural Gas” companies pay a dividend yield of 7.3% and pay out 116.5% of their earnings in the form of a dividend.

Summary

South Bow competitors beat South Bow on 9 of the 12 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.