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

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HF Sinclair	1.10%	5.51%	3.16%
South Bow	N/A	N/A	N/A

Insider & Institutional Ownership

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

Dividends

HF Sinclair pays an annual dividend of $2.00 per share and has a dividend yield of 5.5%. South Bow pays an annual dividend of $2.00 per share and has a dividend yield of 8.3%. 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. South Bow pays out 108.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. South Bow is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HF Sinclair	$31.96 billion	0.21	$1.59 billion	$1.62	22.42
South Bow	N/A	N/A	N/A	$1.85	13.03

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

Analyst Ratings

This is a breakdown of current ratings for HF Sinclair and South Bow, as provided by MarketBeat.

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

HF Sinclair presently has a consensus price target of $51.00, suggesting a potential upside of 40.44%. South Bow has a consensus price target of $25.00, suggesting a potential upside of 3.70%. Given HF Sinclair’s stronger consensus rating and higher possible upside, equities analysts plainly believe HF Sinclair is more favorable than South Bow.

Summary

HF Sinclair beats South Bow on 10 of the 14 factors compared between the two stocks.

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.

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.