Chesapeake Energy (OTCMKTS:CHKAQ – Get Free Report) and SM Energy (NYSE:SM – Get Free Report) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.
Profitability
This table compares Chesapeake Energy and SM Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chesapeake Energy | -162.46% | N/A | -3.45% |
| SM Energy | 31.80% | 20.10% | 11.34% |
Valuation and Earnings
This table compares Chesapeake Energy and SM Energy’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chesapeake Energy | $8.49 billion | 0.00 | -$308.00 million | ($54.00) | -0.06 |
| SM Energy | $2.37 billion | 2.22 | $817.88 million | $6.38 | 7.18 |
Risk & Volatility
Chesapeake Energy has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, SM Energy has a beta of 4.15, meaning that its share price is 315% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Chesapeake Energy and SM Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chesapeake Energy | 0 | 0 | 0 | 0 | N/A |
| SM Energy | 0 | 3 | 5 | 0 | 2.63 |
SM Energy has a consensus target price of $54.57, indicating a potential upside of 19.10%. Given SM Energy’s higher probable upside, analysts clearly believe SM Energy is more favorable than Chesapeake Energy.
Institutional & Insider Ownership
2.0% of Chesapeake Energy shares are owned by institutional investors. Comparatively, 94.6% of SM Energy shares are owned by institutional investors. 1.1% of Chesapeake Energy shares are owned by company insiders. Comparatively, 1.5% of SM Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
SM Energy beats Chesapeake Energy on 12 of the 13 factors compared between the two stocks.
About Chesapeake Energy
Chesapeake Energy Corp. is an independent exploration and production company, which engages in acquisition, exploration and development of properties for the production of oil, natural gas and natural gas liquids from underground reservoirs. It focuses on projects located in Louisiana, Ohio, Oklahoma, Pennsylvania, Texas, and Wyoming. The company was founded by Aubrey K. McClendon and Tom L. Ward on May 18, 1989 and is headquartered in Oklahoma City, OK.
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.
Receive News & Ratings for Chesapeake Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Chesapeake Energy and related companies with MarketBeat.com's FREE daily email newsletter.
