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 $9.1B against $6.6B — 1.4× the size. Antero Midstream Corporation trades at the lower P/E: 13.4× against 14.4×. Antero Midstream Corporation grew revenue faster over the last twelve months: 7.34% against −2.10%. Antero Midstream Corporation has the higher net margin (53.4% vs 23.0%) and the higher return on invested capital (12.0% vs 6.54%). Both pay a dividend; South Bow Corporation yields more (6.30% vs 4.69%). Across the 21 metrics below, Antero Midstream Corporation leads on 15 and South Bow Corporation on 6.

Valuation

Metric AM SOBO Oil & Gas Midstream median
P/E 13.45 14.37 11.68
P/S 7.20 3.31 2.39
P/B 4.11 2.49 1.68
Price to free cash flow 5.91 9.70 8.52
EV/EBITDA 9.50 10.51 9.03
EV/Sales 9.48 5.81 3.43
Earnings yield 7.44% 6.96% 7.78%
Free cash flow yield 16.93% 10.31% 7.11%

Profitability

Metric AM SOBO Oil & Gas Midstream median
Gross margin 76.88% 49.48% 54.87%
Operating margin 81.25% 42.78% 34.73%
Net margin 53.41% 22.99% 20.12%
Free cash flow margin 121.84% 34.13% 14.43%
Return on equity 31.59% 17.35% 11.73%
Return on assets 11.21% 4.02% 4.43%
Return on invested capital 11.97% 6.54% 6.10%

Growth

Metric AM SOBO Oil & Gas Midstream median
Revenue growth (TTM) 7.34% (2.10%) 14.88%
EPS growth (last fiscal year) 3.61% 36.18% (7.78%)
Revenue growth, 5-year CAGR 5.70% — 10.05%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric AM SOBO Oil & Gas Midstream median
Debt to equity 1.42 2.15 0.77
Current ratio 0.84 1.52 1.19
Net debt to EBITDA 3.46 4.90 3.46

Dividend

Metric AM SOBO Oil & Gas Midstream median
Dividend yield 4.69% 6.30% 4.94%
Payout ratio 0.63 0.91 0.73

Size

Metric AM SOBO Oil & Gas Midstream median
Market cap 9.05b 6.59b 3.56b

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