Critical Survey: Chaparral Energy (CHPE) vs. SM Energy (SM)

Chaparral Energy (OTCMKTS: CHPE) and SM Energy (NYSE:SM) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Dividends

SM Energy pays an annual dividend of $0.10 per share and has a dividend yield of 0.4%. Chaparral Energy does not pay a dividend. SM Energy pays out -12.2% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Chaparral Energy N/A N/A N/A
SM Energy 4.86% -2.53% -1.01%

Earnings & Valuation

This table compares Chaparral Energy and SM Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chaparral Energy $293.61 million 3.29 $923.05 million N/A N/A
SM Energy $1.13 billion 2.39 -$160.84 million ($0.82) -29.46

Chaparral Energy has higher earnings, but lower revenue than SM Energy.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Chaparral Energy and SM Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chaparral Energy 0 0 2 0 3.00
SM Energy 0 6 13 0 2.68

Chaparral Energy currently has a consensus price target of $32.75, indicating a potential upside of 57.45%. SM Energy has a consensus price target of $28.50, indicating a potential upside of 17.96%. Given Chaparral Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Chaparral Energy is more favorable than SM Energy.

Summary

Chaparral Energy beats SM Energy on 6 of the 11 factors compared between the two stocks.

About Chaparral Energy

Chaparral Energy, Inc. engages in the acquisition, exploration, development, production, and operation of onshore oil and natural gas properties primarily in Oklahoma, the United States. The company sells crude oil, natural gas, and natural gas liquids primarily to refineries and gas processing plant. As of March 29, 2018, it had estimated potential reserves of one billion barrels of oil equivalent. The company was founded in 1988 and is headquartered in Oklahoma City, Oklahoma.

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 South Texas and Gulf Coast, Rocky Mountain, and Permian regions. 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.

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