South Bow (NYSE:SOBO) versus Plains All American Pipeline (NYSE:PAA) Head-To-Head Survey

Plains All American Pipeline (NYSE:PAA) and South Bow (NYSE:SOBO) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Dividends

Plains All American Pipeline pays an annual dividend of $1.27 per share and has a dividend yield of 6.2%. South Bow pays an annual dividend of $2.00 per share and has a dividend yield of 8.1%. Plains All American Pipeline pays out 113.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of recent recommendations for Plains All American Pipeline and South Bow, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Plains All American Pipeline	2	6	5	0	2.23
South Bow	2	4	1	2	2.33

Plains All American Pipeline presently has a consensus target price of $19.92, indicating a potential downside of 3.14%. South Bow has a consensus target price of $25.00, indicating a potential upside of 0.83%. Given South Bow’s stronger consensus rating and higher probable upside, analysts clearly believe South Bow is more favorable than Plains All American Pipeline.

Earnings and Valuation

This table compares Plains All American Pipeline and South Bow”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Plains All American Pipeline	$48.71 billion	0.30	$1.23 billion	$1.12	18.37
South Bow	N/A	N/A	N/A	N/A	N/A

Plains All American Pipeline has higher revenue and earnings than South Bow.

Profitability

This table compares Plains All American Pipeline and South Bow’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Plains All American Pipeline	2.08%	11.63%	4.82%
South Bow	N/A	N/A	N/A

Institutional & Insider Ownership

41.8% of Plains All American Pipeline shares are owned by institutional investors. 0.9% of Plains All American Pipeline shares are owned by 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.

Summary

Plains All American Pipeline beats South Bow on 7 of the 12 factors compared between the two stocks.

About Plains All American Pipeline

Plains All American Pipeline, L.P., through its subsidiaries, engages in the pipeline transportation, terminaling, storage, and gathering of crude oil and natural gas liquids (NGL) in the United States and Canada. The company operates through two segments, Crude Oil and NGL. The Crude Oil segment offers gathering and transporting crude oil through pipelines, gathering systems, trucks, and on barges or railcars. This segment provides terminaling, storage, and other facilities-related services, as well as merchant activities. The NGL segment is involved in natural gas processing and NGL fractionation, storage, transportation, and terminaling. This segment also includes ethane, propane, normal butane, iso-butane, and natural gasoline derived from natural gas production and processing activities, as well as crude oil refining processes. Its NGL components are used for various applications, such as heating, engine, and industrial fuels. The company was founded in 1981 and is headquartered in Houston, Texas. Plains All American Pipeline, L.P. operates as a subsidiary of Plains GP Holdings, L.P.

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.