Kinetik Holdings Inc. (KNTK) vs South Bow Corporation (SOBO)

Kinetik Holdings Inc. and South Bow Corporation are both Oil & Gas Midstream companies. Kinetik Holdings Inc. is the larger, with a market value of $8.0B against $6.6B — 1.2× the size. South Bow Corporation trades at the lower P/E: 14.4× against 16.3×. Kinetik Holdings Inc. grew revenue faster over the last twelve months: 15.8% against −2.10%. South Bow Corporation has the higher net margin (23.0% vs 0.00%) and the higher return on invested capital (6.54% vs 5.82%). Both pay a dividend; Kinetik Holdings Inc. yields more (6.57% vs 6.30%). Across the 20 metrics below, South Bow Corporation leads on 14 and Kinetik Holdings Inc. on 6.

Valuation

Metric KNTK SOBO Oil & Gas Midstream median
P/E 16.33 14.37 11.68
P/S 1.98 3.31 2.39
P/B n/m 2.49 1.68
Price to free cash flow 16.68 9.70 8.52
EV/EBITDA 12.85 10.51 9.03
EV/Sales 3.97 5.81 3.43
Earnings yield 6.12% 6.96% 7.78%
Free cash flow yield 6.00% 10.31% 7.11%

Profitability

Metric KNTK SOBO Oil & Gas Midstream median
Gross margin 41.01% 49.48% 54.87%
Operating margin 12.17% 42.78% 34.73%
Net margin 0.00% 22.99% 20.12%
Free cash flow margin 11.88% 34.13% 14.43%
Return on equity 0.00% 17.35% 11.73%
Return on assets 0.00% 4.02% 4.43%
Return on invested capital 5.82% 6.54% 6.10%

Growth

Metric KNTK SOBO Oil & Gas Midstream median
Revenue growth (TTM) 15.79% (2.10%) 14.88%
EPS growth (last fiscal year) 157.84% 36.18% (7.78%)
Revenue growth, 5-year CAGR 33.88% — 10.05%
Net income growth, 5-year CAGR 129.65% — 0.00%

Health

Metric KNTK SOBO Oil & Gas Midstream median
Debt to equity (2.93) 2.15 0.77
Current ratio 0.64 1.52 1.19
Net debt to EBITDA 6.79 4.90 3.46

Dividend

Metric KNTK SOBO Oil & Gas Midstream median
Dividend yield 6.57% 6.30% 4.94%
Payout ratio 1.08 0.91 0.73

Size

Metric KNTK SOBO Oil & Gas Midstream median
Market cap 7.98b 6.59b 3.56b

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