Crescent Energy (NYSE:CRGY – Get Free Report) and South Bow (NYSE:SOBO – Get Free Report) are both mid-cap energy companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.
Analyst Recommendations
This is a summary of recent recommendations for Crescent Energy and South Bow, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Crescent Energy | 1 | 4 | 11 | 2 | 2.78 |
| South Bow | 4 | 7 | 4 | 0 | 2.00 |
Crescent Energy presently has a consensus price target of $17.14, indicating a potential upside of 23.77%. South Bow has a consensus price target of $32.50, indicating a potential downside of 8.21%. Given Crescent Energy’s stronger consensus rating and higher probable upside, equities analysts plainly believe Crescent Energy is more favorable than South Bow.
Insider and Institutional Ownership
52.1% of Crescent Energy shares are held by institutional investors. 13.2% of Crescent Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Crescent Energy and South Bow”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Crescent Energy | $3.58 billion | 1.63 | $132.91 million | ($0.05) | -277.02 |
| South Bow | $1.99 billion | 3.72 | $433.00 million | $2.21 | 16.02 |
South Bow has lower revenue, but higher earnings than Crescent Energy. Crescent Energy 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
Crescent Energy pays an annual dividend of $0.48 per share and has a dividend yield of 3.5%. South Bow pays an annual dividend of $2.00 per share and has a dividend yield of 5.6%. Crescent Energy pays out -960.0% of its earnings in the form of a dividend. South Bow pays out 90.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Crescent Energy has raised its dividend for 1 consecutive years.
Volatility and Risk
Crescent Energy has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, South Bow has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500.
Profitability
This table compares Crescent Energy and South Bow’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Crescent Energy | 1.27% | 10.52% | 4.44% |
| South Bow | 22.99% | 15.84% | 3.73% |
Summary
Crescent Energy beats South Bow on 11 of the 18 factors compared between the two stocks.
About Crescent Energy
Crescent Energy Company acquires, develops, and produces crude oil, natural gas, and natural gas liquids (NGLs) reserves. Its portfolio of assets comprises mid-cycle unconventional and conventional assets in the Eagle Ford and Uinta Basins. It also owns and operates various midstream assets, which provide services to customers. The company is based in Houston, Texas.
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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