SM Energy (NYSE:SM) and Pengrowth Energy (OTCMKTS:PGHEF) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.
Earnings and Valuation
This table compares SM Energy and Pengrowth Energy’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SM Energy||$1.13 billion||3.28||-$160.84 million||($0.82)||-40.23|
|Pengrowth Energy||$519.16 million||0.97||-$527.48 million||($1.05)||-0.86|
SM Energy has higher revenue and earnings than Pengrowth Energy. SM Energy is trading at a lower price-to-earnings ratio than Pengrowth Energy, indicating that it is currently the more affordable of the two stocks.
This table compares SM Energy and Pengrowth Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
SM Energy pays an annual dividend of $0.10 per share and has a dividend yield of 0.3%. Pengrowth Energy does not pay a dividend. SM Energy pays out -12.2% of its earnings in the form of a dividend.
Insider & Institutional Ownership
1.7% of Pengrowth Energy shares are held by institutional investors. 0.9% of SM Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk and Volatility
SM Energy has a beta of 3.03, suggesting that its share price is 203% more volatile than the S&P 500. Comparatively, Pengrowth Energy has a beta of 1.98, suggesting that its share price is 98% more volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for SM Energy and Pengrowth Energy, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SM Energy presently has a consensus price target of $30.60, suggesting a potential downside of 7.24%. Given SM Energy’s stronger consensus rating and higher possible upside, equities research analysts clearly believe SM Energy is more favorable than Pengrowth Energy.
SM Energy beats Pengrowth Energy on 14 of the 16 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 crude oil and condensate, natural gas, and natural gas liquids in onshore North America. It primarily has operations in the Midland Basin and the Eagle Ford shale in Texas. As of December 31, 2017, the company had 468.1 million barrels of oil equivalent of estimated proved reserves; and working interests in 919 net productive oil wells and 489 net productive gas wells. 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 Pengrowth Energy
Pengrowth Energy Corporation engages in the acquisition, exploration, development, and production of oil and natural gas assets in Alberta, British Columbia, Saskatchewan, and Nova Scotia provinces in Canada. The company explores for crude oil, bitumen, natural gas, shale gas, and natural gas liquids. Its principal producing properties are the Lindbergh thermal property covering an area of 20,800 net acres situated in Calgary, Alberta; and the Groundbirch property covering an area of 12,536 net acres located in Fort St. John, British Columbia. As of December 31, 2017, the company had 239 net producing oil and natural gas wells; and 577 net non-producing wells, as well as total proved plus probable reserves of 446.6 millions of barrels of oil equivalent. Pengrowth Energy Corporation was founded in 1988 and is headquartered in Calgary, Canada.
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