Contrasting South Bow (NYSE:SOBO) & China Natural Gas (OTCMKTS:CHNGQ)

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

Profitability

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

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

Analyst Ratings

This is a breakdown of recent ratings for South Bow and China Natural Gas, as provided by MarketBeat.

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

South Bow presently has a consensus price target of $29.40, suggesting a potential upside of 5.88%. Given South Bow’s stronger consensus rating and higher possible upside, analysts clearly believe South Bow is more favorable than China Natural Gas.

Risk & Volatility

South Bow has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, China Natural Gas has a beta of -9.51, suggesting that its share price is 1,051% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
South Bow	$1.97 billion	2.93	$316.00 million	$1.59	17.46
China Natural Gas	N/A	N/A	N/A	N/A	N/A

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

Summary

South Bow beats China Natural Gas on 8 of the 8 factors compared between the two stocks.

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.

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.