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 $8.7B against $7.0B — 1.2× the size. South Bow Corporation trades at the lower P/E: 15.7× against 19.8×. Kinetik Holdings Inc. grew revenue faster over the last twelve months: 14.2% against −2.10%. South Bow Corporation has the higher net margin (23.0% vs 10.4%) and the higher return on invested capital (6.54% vs 4.47%). Both pay a dividend; Kinetik Holdings Inc. yields more (5.80% vs 5.77%). 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 19.82 15.70 12.77
P/S 2.20 3.62 2.36
P/B n/m 2.72 2.09
Price to free cash flow 33.68 10.59 9.71
EV/EBITDA 13.19 11.06 8.30
EV/Sales 4.30 6.12 3.88
Earnings yield 5.05% 6.37% 7.15%
Free cash flow yield 2.97% 9.44% 6.86%

Profitability

Metric KNTK SOBO Oil & Gas Midstream median
Gross margin 40.92% 49.48% 56.58%
Operating margin 10.52% 42.78% 34.18%
Net margin 10.41% 22.99% 22.50%
Free cash flow margin 6.54% 34.13% 13.70%
Return on equity (14.28%) 17.35% 14.65%
Return on assets 2.74% 4.02% 5.00%
Return on invested capital 4.47% 6.54% 6.13%

Growth

Metric KNTK SOBO Oil & Gas Midstream median
Revenue growth (TTM) 14.15% (2.10%) 15.60%
EPS growth (last fiscal year) 157.84% 36.18% (7.86%)
Revenue growth, 5-year CAGR 33.88% — 9.59%
Net income growth, 5-year CAGR 126.35% — 0.00%

Health

Metric KNTK SOBO Oil & Gas Midstream median
Debt to equity (3.34) 2.15 0.78
Current ratio 0.68 1.52 1.19
Net debt to EBITDA 6.79 4.90 3.42

Dividend

Metric KNTK SOBO Oil & Gas Midstream median
Dividend yield 5.80% 5.77% 4.54%
Payout ratio 1.16 0.91 0.76

Size

Metric KNTK SOBO Oil & Gas Midstream median
Market cap 8.68b 7.04b 3.73b

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