Comparing SM Energy (NYSE:SM) & Stratex Oil & Gas (OTCMKTS:STTX)

Stratex Oil & Gas (OTCMKTS:STTX) and SM Energy (NYSE:SM) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Earnings & Valuation

This table compares Stratex Oil & Gas and SM Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stratex Oil & Gas	N/A	N/A	N/A	N/A	N/A
SM Energy	$2.69 billion	0.90	$770.29 million	$6.34	3.33

SM Energy has higher revenue and earnings than Stratex Oil & Gas.

Profitability

This table compares Stratex Oil & Gas and SM Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stratex Oil & Gas	N/A	N/A	N/A
SM Energy	22.03%	16.67%	8.44%

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. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Stratex Oil & Gas and SM Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stratex Oil & Gas	0	0	0	0	0.00
SM Energy	2	5	3	1	2.27

SM Energy has a consensus target price of $33.20, indicating a potential upside of 57.42%. Given SM Energy’s stronger consensus rating and higher probable upside, analysts plainly believe SM Energy is more favorable than Stratex Oil & Gas.

Volatility & Risk

Stratex Oil & Gas has a beta of 2.23, meaning that its share price is 123% more volatile than the S&P 500. Comparatively, SM Energy has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Summary

SM Energy beats Stratex Oil & Gas on 10 of the 11 factors compared between the two stocks.

About Stratex Oil & Gas

Stratex Oil & Gas Holdings, Inc., an independent energy company, focuses on the acquisition, exploitation, and development of crude oil in Kansas and Texas, as well as non-operated working interests in North Dakota, Montana, Utah, Colorado, and Kansas. The company is also involved in the sale of oil and gas. The company was formerly known as Poway Muffler and Brake, Inc. and changed its name to Stratex Oil & Gas Holdings, Inc. in May 2012. Stratex Oil & Gas Holdings, Inc. is based in Salt Lake City, Utah.

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.