APA Corporation (APA) vs SM Energy Company (SM)

APA Corporation and SM Energy Company are both Oil & Gas E&P companies. APA Corporation is the larger, with a market value of $15.2B against $7.1B — 2.2× the size. APA Corporation trades at the lower P/E: 7.1× against 7.2×. SM Energy Company grew revenue faster over the last twelve months: 107.6% against −3.49%. APA Corporation has the higher net margin (23.1% vs 13.7%) and the higher return on invested capital (20.9% vs 7.24%). Both pay a dividend; SM Energy Company yields more (2.89% vs 2.29%). Across the 22 metrics below, APA Corporation leads on 14 and SM Energy Company on 8.

Valuation

Metric APA SM Oil & Gas E&P median
P/E 7.07 7.18 9.67
P/S 1.62 1.03 1.76
P/B 1.88 0.91 1.19
Price to free cash flow 10.51 3.60 8.37
EV/EBITDA 3.08 4.40 4.59
EV/Sales 1.96 2.11 2.27
Earnings yield 14.14% 13.92% 7.55%
Free cash flow yield 9.51% 27.76% 3.98%

Profitability

Metric APA SM Oil & Gas E&P median
Gross margin 0.00% 74.25% 79.54%
Operating margin 40.37% 23.57% 24.01%
Net margin 23.08% 13.69% 14.11%
Free cash flow margin 47.26% 28.56% 7.72%
Return on equity 28.98% 15.02% 8.99%
Return on assets 12.20% 6.69% 4.63%
Return on invested capital 20.94% 7.24% 6.33%

Growth

Metric APA SM Oil & Gas E&P median
Revenue growth (TTM) (3.49%) 107.58% 13.60%
EPS growth (last fiscal year) 75.77% (15.44%) (10.17%)
Revenue growth, 5-year CAGR 16.44% 22.86% 18.67%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric APA SM Oil & Gas E&P median
Debt to equity 0.41 0.85 0.29
Current ratio 0.85 0.57 0.92
Net debt to EBITDA 0.78 1.06 0.93

Dividend

Metric APA SM Oil & Gas E&P median
Dividend yield 2.29% 2.89% 3.76%
Payout ratio 0.16 0.21 0.33

Size

Metric APA SM Oil & Gas E&P median
Market cap 15.23b 7.05b 953.29m

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