Head to Head Survey: SM Energy (NYSE:SM) and Mexco Energy (NYSE:MXC)

SM Energy (NYSE:SM) and Mexco Energy (NYSE:MXC) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Valuation & Earnings

This table compares SM Energy and Mexco Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SM Energy	$2.37 billion	2.08	$817.88 million	$7.16	6.04
Mexco Energy	$6.61 million	3.68	$1.35 million	$0.57	20.81

SM Energy has higher revenue and earnings than Mexco Energy. SM Energy is trading at a lower price-to-earnings ratio than Mexco Energy, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

SM Energy has a beta of 4.14, meaning that its stock price is 314% more volatile than the S&P 500. Comparatively, Mexco Energy has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for SM Energy and Mexco Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SM Energy	0	6	6	1	2.62
Mexco Energy	0	0	0	0	0.00

SM Energy currently has a consensus target price of $51.90, suggesting a potential upside of 20.02%. Given SM Energy’s stronger consensus rating and higher probable upside, equities research analysts plainly believe SM Energy is more favorable than Mexco Energy.

Profitability

This table compares SM Energy and Mexco Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SM Energy	33.89%	19.62%	10.87%
Mexco Energy	17.59%	6.94%	6.37%

Institutional & Insider Ownership

94.6% of SM Energy shares are owned by institutional investors. Comparatively, 5.9% of Mexco Energy shares are owned by institutional investors. 1.5% of SM Energy shares are owned by company insiders. Comparatively, 53.1% of Mexco Energy shares are owned 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.

Summary

SM Energy beats Mexco Energy on 12 of the 15 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 Mexco Energy

Mexco Energy Corporation, an independent oil and gas company, engages in the acquisition, exploration, development, and production of natural gas, crude oil, condensate, and natural gas liquids in the United States. It owns partial interests in approximately 6,400 gross producing wells located in the states of Texas, New Mexico, Oklahoma, Louisiana, Alabama, Mississippi, Arkansas, Wyoming, Kansas, Colorado, Montana, Virginia, North Dakota, and Ohio. It also owned leasehold mineral, royalty, and other interests in approximately 2,768 net acres. The company was formerly known as Miller Oil Company and changed its name to Mexco Energy Corporation in April 1980. Mexco Energy Corporation was incorporated in 1972 and is based in Midland, Texas.