Critical Analysis: Sable Offshore (SOC) versus The Competition

Sable Offshore (NYSE:SOC) is one of 20 publicly-traded companies in the “OIL – US INTEGRTD” industry, but how does it compare to its rivals? We will compare Sable Offshore to related companies based on the strength of its valuation, earnings, dividends, profitability, institutional ownership, risk and analyst recommendations.

Insider & Institutional Ownership

26.2% of Sable Offshore shares are owned by institutional investors. Comparatively, 60.8% of shares of all “OIL – US INTEGRTD” companies are owned by institutional investors. 36.4% of Sable Offshore shares are owned by insiders. Comparatively, 7.4% of shares of all “OIL – US INTEGRTD” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Sable Offshore and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sable Offshore	N/A	-$629.07 million	-2.13
Sable Offshore Competitors	$6.66 billion	$947.96 million	12.26

Sable Offshore’s rivals have higher revenue and earnings than Sable Offshore. Sable Offshore is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Sable Offshore and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sable Offshore	N/A	-88.48%	-17.69%
Sable Offshore Competitors	21.64%	11.56%	6.12%

Volatility & Risk

Sable Offshore has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, Sable Offshore’s rivals have a beta of 12.44, suggesting that their average share price is 1,144% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Sable Offshore and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sable Offshore	2	0	5	0	2.43
Sable Offshore Competitors	395	1801	1983	83	2.41

Sable Offshore currently has a consensus target price of $19.60, indicating a potential upside of 171.84%. As a group, “OIL – US INTEGRTD” companies have a potential upside of 9.66%. Given Sable Offshore’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Sable Offshore is more favorable than its rivals.

Summary

Sable Offshore rivals beat Sable Offshore on 9 of the 13 factors compared.

About Sable Offshore

Sable Offshore Corp. engages in the oil and gas exploration and development activities in the United States. The company operates through three platforms located in federal waters offshore California. It owns and operates 16 federal leases across approximately 76,000 acres and subsea pipelines, which transport crude oil, natural gas, and produced water from the platforms to the onshore processing facilities. The company was formerly known as Flame Acquisition Corp. and changed its name to Sable Offshore Corp. in February 2024. Sable Offshore Corp. was incorporated in 2020 and is based in Houston, Texas.