International Seaways Inc. (INSW) vs South Bow Corporation (SOBO)

International Seaways Inc. and South Bow Corporation are both Oil & Gas Midstream companies. South Bow Corporation is the larger, with a market value of $7.2B against $5.3B — 1.4× the size. International Seaways Inc. trades at the lower P/E: 6.7× against 15.4×. International Seaways Inc. grew revenue faster over the last twelve months: 57.4% against −2.10%. International Seaways Inc. has the higher net margin (62.0% vs 23.0%) and the higher return on invested capital (20.3% vs 6.54%). Across the 20 metrics below, International Seaways Inc. leads on 18 and South Bow Corporation on 2.

Valuation

Metric INSW SOBO Oil & Gas Midstream median
P/E 6.71 15.38 13.19
P/S 4.16 3.54 2.60
P/B 2.31 2.66 2.08
Price to free cash flow 8.80 10.38 10.14
EV/EBITDA 5.58 10.93 8.11
EV/Sales 4.35 6.05 3.89
Earnings yield 14.91% 6.50% 6.83%
Free cash flow yield 11.37% 9.63% 6.94%

Profitability

Metric INSW SOBO Oil & Gas Midstream median
Gross margin 72.40% 49.48% 58.81%
Operating margin 64.49% 42.78% 32.14%
Net margin 61.98% 22.99% 21.16%
Free cash flow margin 47.29% 34.13% 10.15%
Return on equity 37.41% 17.35% 11.30%
Return on assets 28.12% 4.02% 5.00%
Return on invested capital 20.25% 6.54% 6.13%

Growth

Metric INSW SOBO Oil & Gas Midstream median
Revenue growth (TTM) 57.36% (2.10%) 15.44%
EPS growth (last fiscal year) (25.66%) 36.18% —
Revenue growth, 5-year CAGR 14.87% — 8.96%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric INSW SOBO Oil & Gas Midstream median
Debt to equity 0.29 2.15 0.78
Current ratio 5.94 1.52 1.19
Net debt to EBITDA 0.78 4.90 3.42

Dividend

Metric INSW SOBO Oil & Gas Midstream median
Dividend yield 10.75% — 7.29%
Payout ratio 0.17 — 0.64

Size

Metric INSW SOBO Oil & Gas Midstream median
Market cap 5.25b 7.16b 3.61b

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