SM Energy (NYSE: SM) is one of 245 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it contrast to its competitors? We will compare SM Energy to similar companies based on the strength of its dividends, institutional ownership, analyst recommendations, profitability, earnings, valuation and risk.

Institutional and Insider Ownership

97.1% of SM Energy shares are held by institutional investors. Comparatively, 62.1% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 0.9% of SM Energy shares are held by company insiders. Comparatively, 11.9% of shares of all “Oil & Gas Exploration and Production” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares SM Energy and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SM Energy -20.67% -3.11% -1.19%
SM Energy Competitors -441.94% 4.73% 1.62%

Dividends

SM Energy pays an annual dividend of $0.10 per share and has a dividend yield of 0.6%. SM Energy pays out -3.2% of its earnings in the form of a dividend. As a group, “Oil & Gas Exploration and Production” companies pay a dividend yield of 1.9% and pay out 403.3% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and recommmendations for SM Energy and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SM Energy 0 6 9 0 2.60
SM Energy Competitors 1582 7923 12279 271 2.51

SM Energy currently has a consensus price target of $31.77, indicating a potential upside of 79.59%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 37.24%. Given SM Energy’s stronger consensus rating and higher probable upside, analysts plainly believe SM Energy is more favorable than its competitors.

Valuation & Earnings

This table compares SM Energy and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
SM Energy $1.24 billion $622.71 million -5.65
SM Energy Competitors $1.42 billion $613.49 million 20.43

SM Energy’s competitors have higher revenue, but lower earnings than SM Energy. SM Energy 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.

Volatility & Risk

SM Energy has a beta of 2.96, indicating that its stock price is 196% more volatile than the S&P 500. Comparatively, SM Energy’s competitors have a beta of 1.41, indicating that their average stock price is 41% more volatile than the S&P 500.

Summary

SM Energy beats its competitors on 8 of the 14 factors compared.

SM Energy Company Profile

SM Energy Company is an independent energy company. The Company is engaged in the acquisition, exploration, development and production of crude oil and condensate, natural gas and natural gas liquids in onshore North America. It operates in the exploration and production segment of the oil and gas industry within the United States. Its operations are concentrated in onshore operating areas in the United States, which include South Texas and Gulf Coast Region, Rocky Mountain Region and Permian Region. It has working interests in approximately 1,027 gross productive oil wells and approximately 1,882 gross productive gas wells. Its South Texas and Gulf Coast Region has both operated and non-operated Eagle Ford shale program. It has approximately 124,000 net acres in Divide County, North Dakota, and approximately 156,000 net acres in the Powder River Basin. Its Permian Region closed multiple transactions in the Midland Basin in west Texas acquiring approximately 62,000 net acres.

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