Contrasting OMV (OTCMKTS:OMVKY) and South Bow (NYSE:SOBO)

OMV (OTCMKTS:OMVKY) and South Bow (NYSE:SOBO) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Risk and Volatility

OMV has a beta of -0.04, suggesting that its stock price is 104% less volatile than the S&P 500. Comparatively, South Bow has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OMV	10.62%	13.58%	6.72%
South Bow	22.81%	15.76%	3.74%

Earnings & Valuation

This table compares OMV and South Bow”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OMV	$28.41 billion	0.92	$1.22 billion	$11.12	1.80
South Bow	$1.99 billion	3.39	$433.00 million	$2.23	14.46

OMV has higher revenue and earnings than South Bow. OMV is trading at a lower price-to-earnings ratio than South Bow, indicating that it is currently the more affordable of the two stocks.

Dividends

OMV pays an annual dividend of $0.61 per share and has a dividend yield of 3.0%. South Bow pays an annual dividend of $2.00 per share and has a dividend yield of 6.2%. OMV pays out 5.5% of its earnings in the form of a dividend. South Bow pays out 89.7% 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 current recommendations and price targets for OMV and South Bow, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OMV	3	3	0	1	1.86
South Bow	4	6	4	0	2.00

South Bow has a consensus price target of $32.67, indicating a potential upside of 1.32%. Given South Bow’s stronger consensus rating and higher probable upside, analysts clearly believe South Bow is more favorable than OMV.

Summary

South Bow beats OMV on 9 of the 15 factors compared between the two stocks.

About OMV

OMV Aktiengesellschaft operates as an energy and chemicals company in Austria, Germany, Romania, Norway, Belgium, New Zealand, the United Arab Emirates, the rest of Central and Eastern Europe, the rest of Europe, and internationally. It operates through three segments: Chemicals & Materials, Fuels & Feedstock, and Energy. The company engages in the exploration, development, and production of oil and gas in the regions of Central and Eastern Europe, the Middle East and Africa, the North Sea, and the Asia Pacific; and refining and marketing of fuels and feedstock, as well as supply, marketing, trading, and logistics of gas in Romania and Turkey. In addition, the company provides advanced and circular polyolefin solutions, and base chemicals, as well as engages in the recycling of plastics. It has refineries in Europe, Schwechat, and Burghausen; filling stations in eight European countries; and gas storage facilities in Austria and Germany, as well as a gas-fired power plant in Romania. The company was founded in 1956 and is headquartered in Vienna, Austria.

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.