Head to Head Comparison: Topaz Resources (OTCMKTS:TOPZ) versus SM Energy (NYSE:SM)

SM Energy (NYSE:SM) and Topaz Resources (OTCMKTS:TOPZ) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.

Profitability

This table compares SM Energy and Topaz Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SM Energy	22.03%	16.67%	8.44%
Topaz Resources	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for SM Energy and Topaz Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SM Energy	1	7	3	1	2.33
Topaz Resources	0	0	0	0	0.00

SM Energy presently has a consensus target price of $35.91, indicating a potential upside of 92.23%. Given SM Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe SM Energy is more favorable than Topaz Resources.

Institutional & Insider Ownership

94.6% of SM Energy shares are held by institutional investors. 1.5% of SM Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

SM Energy has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Topaz Resources has a beta of -1.03, suggesting that its share price is 203% less volatile than the S&P 500.

Valuation & Earnings

This table compares SM Energy and Topaz Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SM Energy	$2.69 billion	0.80	$770.29 million	$6.34	2.95
Topaz Resources	N/A	N/A	N/A	N/A	N/A

SM Energy has higher revenue and earnings than Topaz Resources.

Summary

SM Energy beats Topaz Resources on 11 of the 11 factors compared between the two stocks.

About SM Energy

SM Energy Company, an independent energy company, engages in the acquisition, exploration, development, and production of oil, gas, and natural gas liquids in the state of Texas. It has working interests in oil and gas producing wells in the Midland Basin and South Texas. The company was formerly known as St. Mary Land & Exploration Company and changed its name to SM Energy Company in May 2010. SM Energy Company was founded in 1908 and is headquartered in Denver, Colorado.

About Topaz Resources

Topaz Resources, Inc. operates as an independent oil and gas company. It focuses on production, acquisition, and developmental drilling opportunities within proven producing areas of north, central, and west Texas. The company was formerly known as Kids Germ Defense Corp. and changed its name to Topaz Resources, Inc. in April 2010. Topaz Resources, Inc. was founded in 2009 and is headquartered in Denton, Texas.