Antero Midstream Corporation (AM) vs South Bow Corporation (SOBO)

Antero Midstream Corporation and South Bow Corporation are both Oil & Gas Midstream companies. Antero Midstream Corporation is the larger, with a market value of $9.5B against $7.0B — 1.3× the size. South Bow Corporation trades at the lower P/E: 15.7× against 24.6×. Antero Midstream Corporation grew revenue faster over the last twelve months: 6.87% against −2.10%. Antero Midstream Corporation has the higher net margin (32.4% vs 23.0%) and the higher return on invested capital (7.39% vs 6.54%). Both pay a dividend; South Bow Corporation yields more (5.77% vs 4.36%). Across the 21 metrics below, Antero Midstream Corporation leads on 12 and South Bow Corporation on 9.

Valuation

Metric AM SOBO Oil & Gas Midstream median
P/E 24.57 15.70 12.77
P/S 7.95 3.62 2.36
P/B 5.04 2.72 2.09
Price to free cash flow 8.49 10.59 9.71
EV/EBITDA 14.95 11.06 8.30
EV/Sales 10.63 6.12 3.88
Earnings yield 4.07% 6.37% 7.15%
Free cash flow yield 11.77% 9.44% 6.86%

Profitability

Metric AM SOBO Oil & Gas Midstream median
Gross margin 78.34% 49.48% 56.58%
Operating margin 52.83% 42.78% 34.18%
Net margin 32.36% 22.99% 22.50%
Free cash flow margin 93.59% 34.13% 13.70%
Return on equity 19.80% 17.35% 14.65%
Return on assets 6.60% 4.02% 5.00%
Return on invested capital 7.39% 6.54% 6.13%

Growth

Metric AM SOBO Oil & Gas Midstream median
Revenue growth (TTM) 6.87% (2.10%) 15.60%
EPS growth (last fiscal year) 3.61% 36.18% (7.86%)
Revenue growth, 5-year CAGR 5.70% — 9.59%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric AM SOBO Oil & Gas Midstream median
Debt to equity 1.83 2.15 0.78
Current ratio 0.84 1.52 1.19
Net debt to EBITDA 3.46 4.90 3.42

Dividend

Metric AM SOBO Oil & Gas Midstream median
Dividend yield 4.36% 5.77% 4.54%
Payout ratio 1.07 0.91 0.76

Size

Metric AM SOBO Oil & Gas Midstream median
Market cap 9.46b 7.04b 3.73b

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