Critical Comparison: SM Energy (NYSE:SM) vs. PostRock Energy (OTCMKTS:PSTRQ)

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

Volatility & Risk

SM Energy has a beta of 4.19, meaning that its stock price is 319% more volatile than the S&P 500. Comparatively, PostRock Energy has a beta of -9.07, meaning that its stock price is 1,007% less volatile than the S&P 500.

Valuation and Earnings

This table compares SM Energy and PostRock Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SM Energy	$2.44 billion	1.96	$817.88 million	$6.38	6.50
PostRock Energy	N/A	N/A	N/A	N/A	N/A

SM Energy has higher revenue and earnings than PostRock Energy.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SM Energy	33.18%	21.01%	11.99%
PostRock Energy	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and recommmendations for SM Energy and PostRock Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SM Energy	0	4	7	1	2.75
PostRock Energy	0	0	0	0	N/A

SM Energy presently has a consensus target price of $53.22, suggesting a potential upside of 28.28%.

Institutional & Insider Ownership

94.6% of SM Energy shares are owned by institutional investors. 1.5% of SM Energy shares are owned by company insiders. Comparatively, 79.2% of PostRock Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

SM Energy beats PostRock Energy on 8 of the 9 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 PostRock Energy

PostRock Energy Corp. engages in the acquisition, exploration, development, production, and gathering of crude oil and natural gas. It focuses on the Cherokee Basin project in southeastern Kansas, northeastern Oklahoma, and central Oklahoma. The firm also owns and operates minor oil and gas producing properties in the Appalachian Basin. The company was founded in July 2009 and is headquartered in Oklahoma City, OK.