South Bow (NYSE:SOBO) vs. Genesis Energy (NYSE:GEL) Head to Head Analysis

South Bow (NYSE:SOBO) and Genesis Energy (NYSE:GEL) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Analyst Ratings

This is a summary of current recommendations and price targets for South Bow and Genesis Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
South Bow	2	4	1	2	2.33
Genesis Energy	0	0	2	0	3.00

South Bow presently has a consensus price target of $25.00, suggesting a potential upside of 9.03%. Genesis Energy has a consensus price target of $16.00, suggesting a potential upside of 53.11%. Given Genesis Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Genesis Energy is more favorable than South Bow.

Profitability

This table compares South Bow and Genesis Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
South Bow	N/A	N/A	N/A
Genesis Energy	-0.09%	-0.31%	-0.04%

Dividends

South Bow pays an annual dividend of $2.00 per share and has a dividend yield of 8.7%. Genesis Energy pays an annual dividend of $0.66 per share and has a dividend yield of 6.3%. South Bow pays out 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Genesis Energy pays out -89.2% of its earnings in the form of a dividend.

Insider & Institutional Ownership

66.8% of Genesis Energy shares are held by institutional investors. 0.7% of Genesis Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares South Bow and Genesis 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	N/A	N/A	N/A	$1.75	13.10
Genesis Energy	$3.01 billion	0.42	$117.72 million	($0.74)	-14.12

Genesis Energy has higher revenue and earnings than South Bow. Genesis 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.

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 Genesis Energy

Genesis Energy, L.P. provides integrated suite of midstream services in crude oil and natural gas industry in the United States. It operates through Offshore Pipeline Transportation, Soda and Sulfur Services, Marine Transportation, and Onshore Facilities and Transportation segments. The Offshore Pipeline Transportation segment engages in offshore crude oil and natural gas pipeline transportation and handling operations, as well as deep water pipeline servicing. This segment also owns interests in offshore crude oil and natural gas pipeline systems, platforms, and related infrastructure. The Soda and Sulfur Services segment produces, markets, and sells soda ash; and provides sulfur removal services. This segment also owns and operates soda ash production facilities, underground trona ore mines and brine solution mining operations and related equipment, and logistics and other assets; and sells sodium hydrosulfide and caustic soda to industrial and commercial companies involved in the mining of base metals. The Marine Transportation segment offers waterborne transportation of petroleum and crude oil in North America. This segment owns a fleet of 91 barges and 42 push/tow boats. The Onshore Facilities and Transportation segment offers onshore facilities and transportation services to crude oil refineries and producers by purchasing, transporting, storing, blending, and marketing crude oil and refined products; and operates trucks, trailers, railcars, and terminals and tankage in various locations along the Gulf Coast. This segment also transports crude oil, as well as owns four onshore crude oil pipeline systems and four operational crude oil rail unloading facilities. The company was incorporated in 1996 and is headquartered in Houston, Texas.