South Bow Corporation (SOBO) vs Scorpio Tankers Inc. (STNG)

South Bow Corporation and Scorpio Tankers Inc. are both Oil & Gas Midstream companies. South Bow Corporation is the larger, with a market value of $6.6B against $4.1B — 1.6× the size. Scorpio Tankers Inc. trades at the lower P/E: 3.9× against 14.4×. Scorpio Tankers Inc. grew revenue faster over the last twelve months: 39.5% against −2.10%. Scorpio Tankers Inc. has the higher net margin (77.1% vs 23.0%) and the higher return on invested capital (27.2% vs 6.54%). Both pay a dividend; South Bow Corporation yields more (6.30% vs 2.17%). Across the 21 metrics below, Scorpio Tankers Inc. leads on 19 and South Bow Corporation on 2.

Valuation

Metric SOBO STNG Oil & Gas Midstream median
P/E 14.37 3.94 11.68
P/S 3.31 3.00 2.39
P/B 2.49 0.97 1.68
Price to free cash flow 9.70 1.96 8.52
EV/EBITDA 10.51 2.05 9.03
EV/Sales 5.81 1.95 3.43
Earnings yield 6.96% 25.36% 7.78%
Free cash flow yield 10.31% 51.09% 7.11%

Profitability

Metric SOBO STNG Oil & Gas Midstream median
Gross margin 49.48% 73.92% 54.87%
Operating margin 42.78% 82.21% 34.73%
Net margin 22.99% 77.07% 20.12%
Free cash flow margin 34.13% 153.45% 14.43%
Return on equity 17.35% 27.58% 11.73%
Return on assets 4.02% 21.92% 4.43%
Return on invested capital 6.54% 27.23% 6.10%

Growth

Metric SOBO STNG Oil & Gas Midstream median
Revenue growth (TTM) (2.10%) 39.48% 14.88%
EPS growth (last fiscal year) 36.18% (46.54%) (7.78%)
Revenue growth, 5-year CAGR — 0.48% 10.05%
Net income growth, 5-year CAGR — 29.61% 0.00%

Health

Metric SOBO STNG Oil & Gas Midstream median
Debt to equity 2.15 0.14 0.77
Current ratio 1.52 20.65 1.19
Net debt to EBITDA 4.90 (0.28) 3.46

Dividend

Metric SOBO STNG Oil & Gas Midstream median
Dividend yield 6.30% 2.17% 4.94%
Payout ratio 0.91 0.09 0.73

Size

Metric SOBO STNG Oil & Gas Midstream median
Market cap 6.59b 4.12b 3.56b

Compare with another peer

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