Stabilis Solutions (NASDAQ:SLNG – Get Free Report) and South Bow (NYSE:SOBO – Get Free Report) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.
Profitability
This table compares Stabilis Solutions and South Bow’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stabilis Solutions | -14.06% | -12.33% | -8.17% |
| South Bow | 22.99% | 15.84% | 3.73% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Stabilis Solutions and South Bow, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stabilis Solutions | 1 | 1 | 0 | 0 | 1.50 |
| South Bow | 4 | 7 | 4 | 0 | 2.00 |
South Bow has a consensus target price of $32.67, suggesting a potential downside of 3.21%. Given South Bow’s stronger consensus rating and higher probable upside, analysts clearly believe South Bow is more favorable than Stabilis Solutions.
Risk and Volatility
Stabilis Solutions has a beta of -0.24, meaning that its stock price is 124% less volatile than the S&P 500. Comparatively, South Bow has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500.
Institutional & Insider Ownership
3.8% of Stabilis Solutions shares are held by institutional investors. 72.2% of Stabilis Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Stabilis Solutions and South Bow”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stabilis Solutions | $68.25 million | 1.28 | -$1.35 million | ($0.42) | -11.17 |
| South Bow | $1.99 billion | 3.54 | $433.00 million | $2.21 | 15.27 |
South Bow has higher revenue and earnings than Stabilis Solutions. Stabilis Solutions 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 Stabilis Solutions on 12 of the 14 factors compared between the two stocks.
About Stabilis Solutions
Stabilis Solutions, Inc., together with its subsidiaries, an energy transition company, provides clean energy production, storage, transportation, and fueling solutions primarily using liquefied natural gas (LNG) to various end markets in North America. The company offers LNG solutions to customers in aerospace, agriculture, energy, industrial, marine bunkering, mining, pipeline, remote power, and utility markets. It also provides engineering and field support services, as well as rents cryogenic equipment. The company was founded in 2013 and is headquartered in Houston, Texas. Stabilis Solutions, Inc. is a subsidiary of LNG Investment Company LLC.
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.
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