Topaz Resources (OTCMKTS:TOPZ) vs. SM Energy (NYSE:SM) Head to Head Survey

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

Volatility and Risk

SM Energy has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Topaz Resources has a beta of -1.19, indicating that its stock price is 219% less volatile than the S&P 500.

Valuation & Earnings

This table compares SM Energy and Topaz Resources”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SM Energy	$3.27 billion	0.65	$770.29 million	$6.34	2.92
Topaz Resources	N/A	N/A	N/A	N/A	N/A

SM Energy has higher revenue and earnings than Topaz Resources.

Insider & Institutional Ownership

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

Analyst Recommendations

This is a summary of current recommendations for SM Energy and Topaz Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SM Energy	1	7	3	1	2.33
Topaz Resources	0	0	0	0	0.00

SM Energy presently has a consensus price target of $35.91, suggesting a potential upside of 93.84%. Given SM Energy’s stronger consensus rating and higher possible upside, analysts clearly believe SM Energy is more favorable than Topaz Resources.

Profitability

This table compares SM Energy and Topaz Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SM Energy	22.03%	16.67%	8.44%
Topaz Resources	N/A	N/A	N/A

Summary

SM Energy beats Topaz Resources on 11 of the 11 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 Topaz Resources

Topaz Resources, Inc. operates as an independent oil and gas company. It focuses on production, acquisition, and developmental drilling opportunities within proven producing areas of north, central, and west Texas. The company was formerly known as Kids Germ Defense Corp. and changed its name to Topaz Resources, Inc. in April 2010. Topaz Resources, Inc. was founded in 2009 and is headquartered in Denton, Texas.