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 $7.2B against $5.1B — 1.4× the size. South Bow Corporation trades at the lower P/E: 15.4× against 31.4×. 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%). Across the 19 metrics below, South Bow Corporation leads on 11 and Golar LNG Limited on 8.

Valuation

Metric GLNG SOBO Oil & Gas Midstream median
P/E 31.40 15.38 13.19
P/S 11.08 3.54 2.60
P/B 2.29 2.66 2.08
Price to free cash flow n/m 10.38 10.14
EV/EBITDA 22.86 10.93 8.11
EV/Sales 14.74 6.05 3.89
Earnings yield 3.18% 6.50% 6.83%
Free cash flow yield (8.71%) 9.63% 6.94%

Profitability

Metric GLNG SOBO Oil & Gas Midstream median
Gross margin 65.48% 49.48% 58.81%
Operating margin 50.45% 42.78% 32.14%
Net margin 35.65% 22.99% 21.16%
Free cash flow margin (96.52%) 34.13% 10.15%
Return on equity 7.21% 17.35% 11.30%
Return on assets 6.05% 4.02% 5.00%
Return on invested capital 3.71% 6.54% 6.13%

Growth

Metric GLNG SOBO Oil & Gas Midstream median
Revenue growth (TTM) 59.70% (2.10%) 15.44%
EPS growth (last fiscal year) 35.42% 36.18% —
Revenue growth, 5-year CAGR (2.15%) — 8.96%
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 0.78
Current ratio 2.34 1.52 1.19
Net debt to EBITDA 9.20 4.90 3.42

Dividend

Metric GLNG SOBO Oil & Gas Midstream median
Dividend yield 4.66% — 7.29%
Payout ratio 0.27 — 0.64

Size

Metric GLNG SOBO Oil & Gas Midstream median
Market cap 5.10b 7.16b 3.61b

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