South Bow (NYSE:SOBO – Get Free Report) and Crescent Energy (NYSE:CRGY – Get Free Report) are both mid-cap energy companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.
Valuation & Earnings
This table compares South Bow and Crescent Energy”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| South Bow | $1.99 billion | 3.72 | $433.00 million | $2.21 | 16.02 |
| Crescent Energy | $3.58 billion | 1.63 | $132.91 million | ($0.05) | -277.02 |
South Bow has higher earnings, but lower revenue than Crescent Energy. Crescent Energy is trading at a lower price-to-earnings ratio than South Bow, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
South Bow has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500. Comparatively, Crescent Energy has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500.
Insider & Institutional Ownership
52.1% of Crescent Energy shares are owned by institutional investors. 13.2% of Crescent Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and recommmendations for South Bow and Crescent Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| South Bow | 4 | 7 | 4 | 0 | 2.00 |
| Crescent Energy | 1 | 4 | 11 | 2 | 2.78 |
South Bow presently has a consensus target price of $32.50, suggesting a potential downside of 8.21%. Crescent Energy has a consensus target price of $17.14, suggesting a potential upside of 23.77%. Given Crescent Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Crescent Energy is more favorable than South Bow.
Dividends
South Bow pays an annual dividend of $2.00 per share and has a dividend yield of 5.6%. Crescent Energy pays an annual dividend of $0.48 per share and has a dividend yield of 3.5%. South Bow pays out 90.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Crescent Energy pays out -960.0% of its earnings in the form of a dividend. Crescent Energy has increased its dividend for 1 consecutive years.
Profitability
This table compares South Bow and Crescent Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| South Bow | 22.99% | 15.84% | 3.73% |
| Crescent Energy | 1.27% | 10.52% | 4.44% |
Summary
Crescent Energy beats South Bow on 11 of the 18 factors compared between the two stocks.
About South Bow
South Bow Corp is a strategic liquids pipeline company. It is a new liquids-focused midstream infrastructure company. South Bow Corp is based in Canada.
About Crescent Energy
Crescent Energy Company acquires, develops, and produces crude oil, natural gas, and natural gas liquids (NGLs) reserves. Its portfolio of assets comprises mid-cycle unconventional and conventional assets in the Eagle Ford and Uinta Basins. It also owns and operates various midstream assets, which provide services to customers. The company is based in Houston, Texas.
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