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 $15.3B against $8.3B — 1.8× the size. SM Energy Company trades at the lower P/E: 6.6× against 9.0×. SM Energy Company grew revenue faster over the last twelve months: 75.4% against −16.1%. APA Corporation has the higher net margin (19.5% vs 18.2%) and the higher return on invested capital (17.3% vs 7.36%). Both pay a dividend; APA Corporation yields more (3.28% vs 1.69%). Across the 22 metrics below, APA Corporation leads on 13 and SM Energy Company on 9.

Valuation

Metric APA SM Oil & Gas E&P median
P/E 9.02 6.65 10.57
P/S 1.75 1.47 1.80
P/B 1.90 1.04 1.27
Price to free cash flow 9.85 4.94 9.99
EV/EBITDA 3.47 4.66 5.08
EV/Sales 2.14 2.79 2.39
Earnings yield 11.09% 15.04% 6.06%
Free cash flow yield 10.15% 20.24% 6.17%

Profitability

Metric APA SM Oil & Gas E&P median
Gross margin 92.58% 74.16% 80.41%
Operating margin 36.09% 29.59% 21.39%
Net margin 19.48% 18.20% 14.17%
Free cash flow margin 17.78% 29.85% 9.71%
Return on equity 22.59% 16.13% 10.05%
Return on assets 9.30% 7.18% 5.81%
Return on invested capital 17.27% 7.36% 6.32%

Growth

Metric APA SM Oil & Gas E&P median
Revenue growth (TTM) (16.13%) 75.36% 9.94%
EPS growth (last fiscal year) 75.77% (15.44%) —
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 0.47 0.85 0.28
Current ratio 0.95 0.62 0.96
Net debt to EBITDA 0.78 1.06 0.91

Dividend

Metric APA SM Oil & Gas E&P median
Dividend yield 3.28% 1.69% 4.93%
Payout ratio 0.18 0.05 0.07

Size

Metric APA SM Oil & Gas E&P median
Market cap 15.30b 8.28b 923.59m

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