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 $12.1B against $7.0B — 1.7× the size. South Bow Corporation trades at the lower P/E: 15.7× against 26.9×. DT Midstream, Inc. grew revenue faster over the last twelve months: 18.1% against −2.10%. DT Midstream, Inc. has the higher net margin (35.7% vs 23.0%) and the lower return on invested capital (5.03% vs 6.54%). Both pay a dividend; South Bow Corporation yields more (5.77% vs 2.80%). 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 26.94 15.70 12.77
P/S 9.63 3.62 2.36
P/B 2.56 2.72 2.09
Price to free cash flow 26.28 10.59 9.71
EV/EBITDA 16.89 11.06 8.30
EV/Sales 12.06 6.12 3.88
Earnings yield 3.71% 6.37% 7.15%
Free cash flow yield 3.81% 9.44% 6.86%

Profitability

Metric DTM SOBO Oil & Gas Midstream median
Gross margin 100.00% 49.48% 56.58%
Operating margin 49.62% 42.78% 34.18%
Net margin 35.73% 22.99% 22.50%
Free cash flow margin 36.64% 34.13% 13.70%
Return on equity 9.61% 17.35% 14.65%
Return on assets 4.64% 4.02% 5.00%
Return on invested capital 5.03% 6.54% 6.13%

Growth

Metric DTM SOBO Oil & Gas Midstream median
Revenue growth (TTM) 18.12% (2.10%) 15.60%
EPS growth (last fiscal year) 19.44% 36.18% (7.86%)
Revenue growth, 5-year CAGR 10.51% — 9.59%
Net income growth, 5-year CAGR 7.17% — 0.00%

Health

Metric DTM SOBO Oil & Gas Midstream median
Debt to equity 0.68 2.15 0.78
Current ratio 1.37 1.52 1.19
Net debt to EBITDA 3.68 4.90 3.42

Dividend

Metric DTM SOBO Oil & Gas Midstream median
Dividend yield 2.80% 5.77% 4.54%
Payout ratio 0.76 0.91 0.76

Size

Metric DTM SOBO Oil & Gas Midstream median
Market cap 12.12b 7.04b 3.73b

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