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 $7.0B against $5.6B — 1.3× the size. International Seaways Inc. trades at the lower P/E: 7.0× against 15.7×. 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%). Both pay a dividend; South Bow Corporation yields more (5.77% vs 4.70%). Across the 21 metrics below, International Seaways Inc. leads on 18 and South Bow Corporation on 3.

Valuation

Metric INSW SOBO Oil & Gas Midstream median
P/E 6.98 15.70 12.77
P/S 4.33 3.62 2.36
P/B 2.40 2.72 2.09
Price to free cash flow 9.16 10.59 9.71
EV/EBITDA 5.80 11.06 8.30
EV/Sales 4.52 6.12 3.88
Earnings yield 14.32% 6.37% 7.15%
Free cash flow yield 10.92% 9.44% 6.86%

Profitability

Metric INSW SOBO Oil & Gas Midstream median
Gross margin 72.40% 49.48% 56.58%
Operating margin 64.49% 42.78% 34.18%
Net margin 61.98% 22.99% 22.50%
Free cash flow margin 47.29% 34.13% 13.70%
Return on equity 37.41% 17.35% 14.65%
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%) 15.60%
EPS growth (last fiscal year) (25.66%) 36.18% (7.86%)
Revenue growth, 5-year CAGR 14.87% — 9.59%
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 4.70% 5.77% 4.54%
Payout ratio 0.33 0.91 0.76

Size

Metric INSW SOBO Oil & Gas Midstream median
Market cap 5.60b 7.04b 3.73b

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