Critical Analysis: Sable Offshore (SOC) versus The Competition

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

Institutional & Insider 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 endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Sable Offshore and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sable Offshore	2	0	6	0	2.50
Sable Offshore Competitors	392	1788	1969	83	2.41

Sable Offshore presently has a consensus price target of $28.20, suggesting a potential upside of 118.47%. As a group, “OIL – US INTEGRTD” companies have a potential upside of 17.51%. Given Sable Offshore’s stronger consensus rating and higher probable upside, research analysts plainly believe Sable Offshore is more favorable than its competitors.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Sable Offshore	N/A	-$629.07 million	-3.81
Sable Offshore Competitors	$6.46 billion	$947.96 million	25.32

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

Profitability

This table compares Sable Offshore and its competitors’ 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	22.63%	11.93%	6.34%

Volatility and Risk

Sable Offshore has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, Sable Offshore’s competitors have a beta of 12.80, suggesting that their average share price is 1,180% more volatile than the S&P 500.

Summary

Sable Offshore competitors 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.