SM Energy (NYSE:SM – Get Free Report) and Crescent Energy (NYSE:CRGY – Get Free Report) are both mid-cap energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.
Earnings & Valuation
This table compares SM Energy and Crescent Energy”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SM Energy | $3.15 billion | 2.90 | $648.00 million | $5.08 | 7.56 |
| Crescent Energy | $3.58 billion | 1.57 | $132.91 million | ($0.05) | -266.46 |
SM Energy has higher earnings, but lower revenue than Crescent Energy. Crescent Energy 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 Recommendations
This is a breakdown of current ratings for SM Energy and Crescent Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SM Energy | 0 | 5 | 11 | 2 | 2.83 |
| Crescent Energy | 1 | 4 | 11 | 2 | 2.78 |
SM Energy currently has a consensus target price of $40.59, indicating a potential upside of 5.70%. Crescent Energy has a consensus target price of $17.14, indicating a potential upside of 28.67%. Given Crescent Energy’s higher possible upside, analysts clearly believe Crescent Energy is more favorable than SM Energy.
Risk and Volatility
SM Energy has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Crescent Energy has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500.
Profitability
This table compares SM Energy and Crescent Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SM Energy | 18.20% | 17.93% | 7.70% |
| Crescent Energy | 1.27% | 10.52% | 4.44% |
Institutional and Insider Ownership
94.6% of SM Energy shares are held by institutional investors. Comparatively, 52.1% of Crescent Energy shares are held by institutional investors. 0.5% of SM Energy shares are held by insiders. Comparatively, 13.2% of Crescent Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Dividends
SM Energy pays an annual dividend of $0.88 per share and has a dividend yield of 2.3%. Crescent Energy pays an annual dividend of $0.48 per share and has a dividend yield of 3.6%. SM Energy pays out 17.3% of its earnings in the form of a dividend. Crescent Energy pays out -960.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. SM Energy has raised its dividend for 4 consecutive years and Crescent Energy has raised its dividend for 1 consecutive years. Crescent Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
SM Energy beats Crescent Energy on 10 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 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 Crescent Energy
Crescent Energy Company acquires, develops, and produces crude oil, natural gas, and natural gas liquids (NGLs) reserves. Its portfolio of assets comprises mid-cycle unconventional and conventional assets in the Eagle Ford and Uinta Basins. It also owns and operates various midstream assets, which provide services to customers. The company is based in Houston, Texas.
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