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 $10.1B against $7.2B — 1.4× the size. South Bow Corporation trades at the lower P/E: 15.4× against 24.9×. 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%). Across the 20 metrics below, Antero Midstream Corporation leads on 12 and South Bow Corporation on 8.

Valuation

Metric AM SOBO Oil & Gas Midstream median
P/E 24.92 15.38 13.19
P/S 8.06 3.54 2.60
P/B 5.11 2.66 2.08
Price to free cash flow 8.61 10.38 10.14
EV/EBITDA 15.10 10.93 8.11
EV/Sales 10.74 6.05 3.89
Earnings yield 4.01% 6.50% 6.83%
Free cash flow yield 11.61% 9.63% 6.94%

Profitability

Metric AM SOBO Oil & Gas Midstream median
Gross margin 78.34% 49.48% 58.81%
Operating margin 52.83% 42.78% 32.14%
Net margin 32.36% 22.99% 21.16%
Free cash flow margin 93.59% 34.13% 10.15%
Return on equity 19.80% 17.35% 11.30%
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%) 15.44%
EPS growth (last fiscal year) 3.61% 36.18% —
Revenue growth, 5-year CAGR 5.70% — 8.96%
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 7.56% — 7.29%
Payout ratio — — 0.64

Size

Metric AM SOBO Oil & Gas Midstream median
Market cap 10.08b 7.16b 3.61b

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