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 $11.2B against $8.9B — 1.3× the size. SM Energy Company trades at the lower P/E: 7.7× against 11.0×. 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 11.01 7.74 11.01
P/S 1.95 1.72 1.98
P/B 1.44 1.21 1.30
Price to free cash flow 550.51 5.75 10.68
EV/EBITDA 7.56 5.07 5.09
EV/Sales 2.32 3.03 2.63
Earnings yield 9.08% 12.91% 5.78%
Free cash flow yield 0.18% 17.38% 4.91%

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% 8.18%
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%) (10.50%)
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 0.89

Dividend

Metric AR SM Oil & Gas E&P median
Dividend yield — 2.68% 3.29%
Payout ratio — 0.21 0.35

Size

Metric AR SM Oil & Gas E&P median
Market cap 11.20b 8.92b 1.04b

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