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Critical Survey: SM Energy (NYSE:SM) Vs. CNX Resources (NYSE:CNX)

Defense World ·  Sep 29, 2022 01:22

SM Energy (NYSE:SM – Get Rating) and CNX Resources (NYSE:CNX – Get Rating) are both mid-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.

Profitability

This table compares SM Energy and CNX Resources' net margins, return on equity and return on assets.

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Net Margins Return on Equity Return on Assets
SM Energy 25.46% 36.45% 14.32%
CNX Resources N/A 17.38% 6.27%

Earnings & Valuation

This table compares SM Energy and CNX Resources' top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SM Energy $2.62 billion 1.74 $36.23 million $7.11 5.23
CNX Resources $756.79 million 3.97 -$498.64 million ($5.62) -2.82
SM Energy has higher revenue and earnings than CNX Resources. CNX Resources is trading at a lower price-to-earnings ratio than SM Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for SM Energy and CNX Resources, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SM Energy 1 1 6 0 2.63
CNX Resources 2 4 0 0 1.67

SM Energy presently has a consensus price target of $52.22, indicating a potential upside of 40.42%. CNX Resources has a consensus price target of $22.86, indicating a potential upside of 44.03%. Given CNX Resources' higher probable upside, analysts plainly believe CNX Resources is more favorable than SM Energy.

Volatility & Risk

SM Energy has a beta of 4.84, indicating that its share price is 384% more volatile than the S&P 500. Comparatively, CNX Resources has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.

Institutional & Insider Ownership

90.5% of SM Energy shares are owned by institutional investors. Comparatively, 96.1% of CNX Resources shares are owned by institutional investors. 1.6% of SM Energy shares are owned by company insiders. Comparatively, 3.1% of CNX Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

SM Energy beats CNX Resources on 10 of the 14 factors compared between the two stocks.

About SM Energy

(Get Rating)

SM Energy Company, an independent energy company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in the state of Texas. As of February 24, 2022, it had 492.0 million barrels of oil equivalent of estimated proved reserves. It also has working interests in 825 gross productive oil wells and 483 gross productive gas 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 CNX Resources

(Get Rating)

CNX Resources Corporation, an independent natural gas and midstream company, acquires, explores for, develops, and produces natural gas properties in the Appalachian Basin. The company operates in two segments, Shale and Coalbed Methane. It produces and sells pipeline quality natural gas primarily for gas wholesalers. The company owns rights to extract natural gas in Pennsylvania, West Virginia, and Ohio from approximately 526,000 net Marcellus Shale acres; and approximately 610,000 net acres of Utica Shale, as well as rights to extract natural gas from other shale and shallow oil and gas positions from approximately 1,006,000 net acres in Illinois, Indiana, New York, Ohio, Pennsylvania, Virginia, and West Virginia. It also owns rights to extract coalbed methane (CBM) in Virginia from approximately 282,000 net CBM acres in Central Appalachia, as well as 1,733,000 net CBM acres in West Virginia, Pennsylvania, Ohio, Illinois, Indiana, and New Mexico. In addition, the company designs, builds, and operates natural gas gathering systems to move gas from the wellhead to interstate pipelines or other local sales points; owns and operates approximately 2,600 miles of natural gas gathering pipelines, as well as various natural gas processing facilities. It also offers turn-key solutions for water sourcing, delivery, and disposal for its natural gas operations and for third parties. The company was formerly known as CONSOL Energy Inc. and changed its name to CNX Resources Corporation in November 2017. CNX Resources Corporation was founded in 1860 and is headquartered in Canonsburg, Pennsylvania.

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