Reviewing South Bow (NYSE:SOBO) and Clean Energy Fuels (NASDAQ:CLNE)

South Bow (NYSE:SOBO) and Clean Energy Fuels (NASDAQ:CLNE) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Analyst Recommendations

This is a summary of recent ratings and price targets for South Bow and Clean Energy Fuels, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
South Bow	3	8	4	0	2.07
Clean Energy Fuels	1	2	0	1	2.25

South Bow currently has a consensus price target of $33.00, indicating a potential downside of 8.03%. Clean Energy Fuels has a consensus price target of $2.38, indicating a potential upside of 41.03%. Given Clean Energy Fuels’ stronger consensus rating and higher probable upside, analysts plainly believe Clean Energy Fuels is more favorable than South Bow.

Volatility & Risk

South Bow has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500. Comparatively, Clean Energy Fuels has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500.

Profitability

This table compares South Bow and Clean Energy Fuels’ 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%
Clean Energy Fuels	-21.27%	-16.52%	-8.87%

Insider & Institutional Ownership

49.9% of Clean Energy Fuels shares are owned by institutional investors. 4.1% of Clean Energy Fuels shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares South Bow and Clean Energy Fuels”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
South Bow	$1.99 billion	3.77	$433.00 million	$2.21	16.24
Clean Energy Fuels	$424.83 million	0.88	-$222.02 million	($0.44)	-3.84

South Bow has higher revenue and earnings than Clean Energy Fuels. Clean Energy Fuels is trading at a lower price-to-earnings ratio than South Bow, indicating that it is currently the more affordable of the two stocks.

Summary

South Bow beats Clean Energy Fuels on 9 of the 15 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 Clean Energy Fuels

Clean Energy Fuels Corp. provides natural gas as alternative fuels for vehicle fleets and related fueling solutions in the United States and Canada. It supplies renewable natural gas (RNG), compressed natural gas (CNG), and liquefied natural gas (LNG) for medium and heavy-duty vehicles; and offers operation and maintenance services for public and private vehicle fleet customer stations. The company also designs, builds, operates, and maintains vehicle fueling stations; and sells and services compressors and other equipment that are used in RNG production and fueling stations. In addition, it transports and sells CNG, RNG, and LNG through virtual natural gas pipelines and interconnects; sells U.S. federal, state, and local government credits, such as RNG as a vehicle fuel, including Renewable Identification Numbers and Low Carbon Fuel Standards credits; and obtains federal, state, and local credits, grants, and incentives. Further, the company focuses on developing, owning, and operating dairy and other livestock waste RNG projects. It serves heavy-duty trucking, airports, refuse, public transit, industrial, and institutional energy users, as well as government fleets. Clean Energy Fuels Corp. was incorporated in 2001 and is headquartered in Newport Beach, California.