Analyzing South Bow (NYSE:SOBO) and HF Sinclair (NYSE:DINO)

South Bow (NYSE:SOBO) and HF Sinclair (NYSE:DINO) are both mid-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Dividends

South Bow pays an annual dividend of $2.00 per share and has a dividend yield of 8.1%. HF Sinclair pays an annual dividend of $2.00 per share and has a dividend yield of 5.5%. HF Sinclair pays out 123.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional & Insider Ownership

88.3% of HF Sinclair shares are held by institutional investors. 0.3% of HF Sinclair shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for South Bow and HF Sinclair, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
South Bow	2	4	1	2	2.33
HF Sinclair	0	7	6	0	2.46

South Bow currently has a consensus target price of $25.00, indicating a potential upside of 0.83%. HF Sinclair has a consensus target price of $51.00, indicating a potential upside of 40.48%. Given HF Sinclair’s stronger consensus rating and higher probable upside, analysts plainly believe HF Sinclair is more favorable than South Bow.

Profitability

This table compares South Bow and HF Sinclair’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
HF Sinclair	1.10%	5.51%	3.16%

Earnings and Valuation

This table compares South Bow and HF Sinclair”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
South Bow	N/A	N/A	N/A	N/A	N/A
HF Sinclair	$31.96 billion	0.21	$1.59 billion	$1.62	22.41

HF Sinclair has higher revenue and earnings than South Bow.

Summary

HF Sinclair beats South Bow on 9 of the 12 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 HF Sinclair

HF Sinclair Corporation operates as an independent energy company. The company produces and markets gasoline, diesel fuel, jet fuel, renewable diesel, specialty lubricant products, specialty chemicals, specialty and modified asphalt, and others. It owns and operates refineries located in Kansas, Oklahoma, New Mexico, Utah, Washington, and Wyoming; and markets its refined products principally in the Southwest United States and Rocky Mountains, Pacific Northwest, and in other neighboring Plains states. In addition, the company supplies fuels to approximately 1,500 independent Sinclair branded stations and licenses the use of the Sinclair brand at approximately 300 additional locations. Further, it produces base oils and other specialized lubricants; and provides petroleum product and crude oil transportation, terminalling, storage, and throughput services to the petroleum sector. HF Sinclair Corporation is headquartered in Dallas, Texas.