Antero Resources Corporation (AR) vs SM Energy Company (SM)

Antero Resources Corporation and SM Energy Company are both Oil & Gas E&P companies. Antero Resources Corporation is the larger, with a market value of $11.1B against $8.3B — 1.3× the size. SM Energy Company trades at the lower P/E: 6.6× against 10.0×. SM Energy Company grew revenue faster over the last twelve months: 75.4% against 25.8%. SM Energy Company has the higher net margin (18.2% vs 17.7%) and the lower return on invested capital (7.36% vs 8.79%). Across the 21 metrics below, SM Energy Company leads on 15 and Antero Resources Corporation on 6.

Valuation

Metric AR SM Oil & Gas E&P median
P/E 9.97 6.65 10.57
P/S 1.77 1.47 1.80
P/B 1.30 1.04 1.27
Price to free cash flow 498.52 4.94 9.99
EV/EBITDA 6.96 4.66 5.08
EV/Sales 2.13 2.79 2.39
Earnings yield 10.03% 15.04% 6.06%
Free cash flow yield 0.20% 20.24% 6.17%

Profitability

Metric AR SM Oil & Gas E&P median
Gross margin 41.67% 74.16% 80.41%
Operating margin 24.67% 29.59% 21.39%
Net margin 17.68% 18.20% 14.17%
Free cash flow margin 0.35% 29.85% 9.71%
Return on equity 13.72% 16.13% 10.05%
Return on assets 7.74% 7.18% 5.81%
Return on invested capital 8.79% 7.36% 6.32%

Growth

Metric AR SM Oil & Gas E&P median
Revenue growth (TTM) 25.76% 75.36% 9.94%
EPS growth (last fiscal year) 1,027.78% (15.44%) —
Revenue growth, 5-year CAGR 8.61% 22.86% 18.67%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AR SM Oil & Gas E&P median
Debt to equity 0.29 0.85 0.28
Current ratio 0.40 0.62 0.96
Net debt to EBITDA 0.74 1.06 0.91

Dividend

Metric AR SM Oil & Gas E&P median
Dividend yield — 1.69% 4.93%
Payout ratio 0.00 0.05 0.07

Size

Metric AR SM Oil & Gas E&P median
Market cap 11.10b 8.28b 923.59m

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