Golar LNG Limited (GLNG) vs South Bow Corporation (SOBO)

Golar LNG Limited and South Bow Corporation are both Oil & Gas Midstream companies. South Bow Corporation is the larger, with a market value of $6.6B against $4.4B — 1.5× the size. South Bow Corporation trades at the lower P/E: 14.4× against 27.1×. Golar LNG Limited grew revenue faster over the last twelve months: 59.7% against −2.10%. Golar LNG Limited has the higher net margin (35.7% vs 23.0%) and the lower return on invested capital (3.71% vs 6.54%). Both pay a dividend; South Bow Corporation yields more (6.30% vs 2.34%). Across the 20 metrics below, South Bow Corporation leads on 13 and Golar LNG Limited on 7.

Valuation

Metric GLNG SOBO Oil & Gas Midstream median
P/E 27.08 14.37 11.68
P/S 9.56 3.31 2.39
P/B 1.98 2.49 1.68
Price to free cash flow n/m 9.70 8.52
EV/EBITDA 20.49 10.51 9.03
EV/Sales 13.22 5.81 3.43
Earnings yield 3.69% 6.96% 7.78%
Free cash flow yield (10.10%) 10.31% 7.11%

Profitability

Metric GLNG SOBO Oil & Gas Midstream median
Gross margin 65.48% 49.48% 54.87%
Operating margin 50.45% 42.78% 34.73%
Net margin 35.65% 22.99% 20.12%
Free cash flow margin (96.52%) 34.13% 14.43%
Return on equity 7.21% 17.35% 11.73%
Return on assets 3.32% 4.02% 4.43%
Return on invested capital 3.71% 6.54% 6.10%

Growth

Metric GLNG SOBO Oil & Gas Midstream median
Revenue growth (TTM) 59.70% (2.10%) 14.88%
EPS growth (last fiscal year) 35.42% 36.18% (7.78%)
Revenue growth, 5-year CAGR (2.15%) — 10.05%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric GLNG SOBO Oil & Gas Midstream median
Debt to equity 1.22 2.15 0.77
Current ratio 2.34 1.52 1.19
Net debt to EBITDA 9.20 4.90 3.46

Dividend

Metric GLNG SOBO Oil & Gas Midstream median
Dividend yield 2.34% 6.30% 4.94%
Payout ratio 0.63 0.91 0.73

Size

Metric GLNG SOBO Oil & Gas Midstream median
Market cap 4.35b 6.59b 3.56b

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