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 $7.0B against $4.6B — 1.5× the size. South Bow Corporation trades at the lower P/E: 15.7× against 28.6×. 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 (5.77% vs 2.21%). 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 28.65 15.70 12.77
P/S 10.11 3.62 2.36
P/B 2.09 2.72 2.09
Price to free cash flow n/m 10.59 9.71
EV/EBITDA 21.35 11.06 8.30
EV/Sales 13.77 6.12 3.88
Earnings yield 3.49% 6.37% 7.15%
Free cash flow yield (9.55%) 9.44% 6.86%

Profitability

Metric GLNG SOBO Oil & Gas Midstream median
Gross margin 65.48% 49.48% 56.58%
Operating margin 50.45% 42.78% 34.18%
Net margin 35.65% 22.99% 22.50%
Free cash flow margin (96.52%) 34.13% 13.70%
Return on equity 7.21% 17.35% 14.65%
Return on assets 3.32% 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%) 15.60%
EPS growth (last fiscal year) 35.42% 36.18% (7.86%)
Revenue growth, 5-year CAGR (2.15%) — 9.59%
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 2.21% 5.77% 4.54%
Payout ratio 0.63 0.91 0.76

Size

Metric GLNG SOBO Oil & Gas Midstream median
Market cap 4.59b 7.04b 3.73b

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