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 $8.5B against $7.2B — 1.2× the size. South Bow Corporation trades at the lower P/E: 15.4× against 18.4×. 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%). Across the 19 metrics below, South Bow Corporation leads on 14 and Kinetik Holdings Inc. on 5.

Valuation

Metric KNTK SOBO Oil & Gas Midstream median
P/E 18.35 15.38 13.19
P/S 2.04 3.54 2.60
P/B n/m 2.66 2.08
Price to free cash flow 31.19 10.38 10.14
EV/EBITDA 12.69 10.93 8.11
EV/Sales 4.14 6.05 3.89
Earnings yield 5.45% 6.50% 6.83%
Free cash flow yield 3.21% 9.63% 6.94%

Profitability

Metric KNTK SOBO Oil & Gas Midstream median
Gross margin 40.92% 49.48% 58.81%
Operating margin 10.52% 42.78% 32.14%
Net margin 10.41% 22.99% 21.16%
Free cash flow margin 6.54% 34.13% 10.15%
Return on equity (14.28%) 17.35% 11.30%
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%) 15.44%
EPS growth (last fiscal year) 157.84% 36.18% —
Revenue growth, 5-year CAGR 33.88% — 8.96%
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 9.21% — 7.29%
Payout ratio 1.79 — 0.64

Size

Metric KNTK SOBO Oil & Gas Midstream median
Market cap 8.53b 7.16b 3.61b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack