Sable Offshore (SOC) versus Its Rivals Critical Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sable Offshore	N/A	-85.29%	-19.26%
Sable Offshore Competitors	21.75%	11.49%	6.08%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Sable Offshore and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sable Offshore	2	0	5	0	2.43
Sable Offshore Competitors	401	1811	1988	83	2.41

Sable Offshore presently has a consensus target price of $19.60, suggesting a potential upside of 367.22%. As a group, “OIL – US INTEGRTD” companies have a potential upside of 11.28%. Given Sable Offshore’s stronger consensus rating and higher probable upside, research analysts clearly believe Sable Offshore is more favorable than its peers.

Institutional and Insider Ownership

26.2% of Sable Offshore shares are held by institutional investors. Comparatively, 60.8% of shares of all “OIL – US INTEGRTD” companies are held by institutional investors. 36.4% of Sable Offshore shares are held by insiders. Comparatively, 7.2% of shares of all “OIL – US INTEGRTD” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Sable Offshore and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sable Offshore	N/A	-$629.07 million	-1.24
Sable Offshore Competitors	$6.63 billion	$947.96 million	12.35

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

Volatility & Risk

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

Summary

Sable Offshore peers 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.