DT Midstream, Inc. (DTM) vs South Bow Corporation (SOBO)

DT Midstream, Inc. and South Bow Corporation are both Oil & Gas Midstream companies. DT Midstream, Inc. is the larger, with a market value of $11.5B against $6.6B — 1.7× the size. South Bow Corporation trades at the lower P/E: 14.4× against 24.4×. DT Midstream, Inc. grew revenue faster over the last twelve months: 13.4% against −2.10%. DT Midstream, Inc. has the higher net margin (35.4% vs 23.0%) and the lower return on invested capital (5.14% vs 6.54%). Both pay a dividend; South Bow Corporation yields more (6.30% vs 3.05%). Across the 21 metrics below, South Bow Corporation leads on 12 and DT Midstream, Inc. on 9.

Valuation

Metric DTM SOBO Oil & Gas Midstream median
P/E 24.38 14.37 11.68
P/S 8.67 3.31 2.39
P/B 2.33 2.49 1.68
Price to free cash flow 21.68 9.70 8.52
EV/EBITDA 15.40 10.51 9.03
EV/Sales 10.98 5.81 3.43
Earnings yield 4.10% 6.96% 7.78%
Free cash flow yield 4.61% 10.31% 7.11%

Profitability

Metric DTM SOBO Oil & Gas Midstream median
Gross margin 100.00% 49.48% 54.87%
Operating margin 49.40% 42.78% 34.73%
Net margin 35.36% 22.99% 20.12%
Free cash flow margin 40.02% 34.13% 14.43%
Return on equity 9.61% 17.35% 11.73%
Return on assets 4.62% 4.02% 4.43%
Return on invested capital 5.14% 6.54% 6.10%

Growth

Metric DTM SOBO Oil & Gas Midstream median
Revenue growth (TTM) 13.36% (2.10%) 14.88%
EPS growth (last fiscal year) 19.44% 36.18% (7.78%)
Revenue growth, 5-year CAGR 10.51% — 10.05%
Net income growth, 5-year CAGR 7.17% — 0.00%

Health

Metric DTM SOBO Oil & Gas Midstream median
Debt to equity 0.66 2.15 0.77
Current ratio 1.16 1.52 1.19
Net debt to EBITDA 3.68 4.90 3.46

Dividend

Metric DTM SOBO Oil & Gas Midstream median
Dividend yield 3.05% 6.30% 4.94%
Payout ratio 0.75 0.91 0.73

Size

Metric DTM SOBO Oil & Gas Midstream median
Market cap 11.52b 6.59b 3.56b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack