Financial Contrast: South Bow (NYSE:SOBO) versus China Natural Gas (OTCMKTS:CHNGQ)

China Natural Gas (OTCMKTS:CHNGQ) and South Bow (NYSE:SOBO) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations for China Natural Gas and South Bow, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Natural Gas	0	0	0	0	0.00
South Bow	3	7	2	0	1.92

South Bow has a consensus target price of $29.40, suggesting a potential upside of 7.21%. Given South Bow’s stronger consensus rating and higher probable upside, analysts clearly believe South Bow is more favorable than China Natural Gas.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
China Natural Gas	N/A	N/A	N/A
South Bow	16.84%	15.13%	3.49%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Natural Gas	N/A	N/A	N/A	N/A	N/A
South Bow	$2.12 billion	2.69	$316.00 million	$1.59	17.25

South Bow has higher revenue and earnings than China Natural Gas.

Summary

South Bow beats China Natural Gas on 7 of the 7 factors compared between the two stocks.

About China Natural Gas

China Natural Gas, Inc., an integrated natural gas operator, engages in the sale and distribution of natural gas and gasoline to commercial, industrial, and residential customers in the People's Republic of China. The company is primarily involved in the distribution of compressed natural gas (CNG) through its variable interest entity-owned CNG fueling stations. As of December 31, 2012, it operated 31 CNG fueling stations, including 20 CNG fueling stations in Shaanxi Province, 10 CNG fueling stations in Henan Province, and 1 CNG fueling station in Hubei Province. It also installs natural gas pipelines, as well as distributes and sells piped natural gas to residential and commercial customers through a high pressure pipeline network of approximately 120 kilometers in the city of Xi'an in Shaanxi Province, including Lantian County; the districts of Lintong and Baqiao in Shaanxi Province; and the city of Lingbao in Henan Province. As of the above date, the company had approximately 122,020 residential and commercial customers for its pipeline network, as well as operated 4 automobile conversion sites for converting gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles. The company is based in Xi'an, the People's Republic of China. On July 2, 2014, the involuntary petition of China Natural Gas, Inc. for reorganization under Chapter 11 was converted to Chapter 7. The involuntary petition was filed under Chapter 11 on February 8, 2013.

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.