SM Energy (NYSE:SM) & Groove Botanicals (OTCMKTS:GRVE) Head-To-Head Comparison

SM Energy (NYSE:SM) and Groove Botanicals (OTCMKTS:GRVE) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Volatility and Risk

SM Energy has a beta of 2.17, suggesting that its stock price is 117% more volatile than the S&P 500. Comparatively, Groove Botanicals has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500.

Valuation & Earnings

This table compares SM Energy and Groove Botanicals”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	$2.95 billion	0.92	$817.88 million	$7.14	3.32
Groove Botanicals	N/A	N/A	-$200,000.00	N/A	N/A

SM Energy has higher revenue and earnings than Groove Botanicals.

Insider and Institutional Ownership

94.6% of SM Energy shares are held by institutional investors. 1.5% of SM Energy shares are held by company insiders. Comparatively, 55.1% of Groove Botanicals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

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

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

SM Energy presently has a consensus target price of $42.92, indicating a potential upside of 81.01%. Given SM Energy’s stronger consensus rating and higher probable upside, research analysts clearly believe SM Energy is more favorable than Groove Botanicals.

Profitability

This table compares SM Energy and Groove Botanicals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SM Energy	28.63%	19.82%	10.59%
Groove Botanicals	N/A	N/A	-5,800.49%

Summary

SM Energy beats Groove Botanicals on 11 of the 12 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 Groove Botanicals

Groove Botanicals, Inc. operates as an independent oil and gas producer. It also focuses on assembling a portfolio of EV battery technologies. The company was formerly known as Avalon Oil & Gas, Inc. and changed its name to Groove Botanicals, Inc. in May 2018. Groove Botanicals, Inc. was incorporated in 1991 and is headquartered in Minneapolis, Minnesota.