Expand Energy Corporation (EXE) vs SM Energy Company (SM)

Expand Energy Corporation and SM Energy Company are both Oil & Gas E&P companies. Expand Energy Corporation is the larger, with a market value of $20.1B against $8.3B — 2.4× the size. SM Energy Company trades at the lower P/E: 6.6× against 7.5×. SM Energy Company grew revenue faster over the last twelve months: 75.4% against 59.3%. Expand Energy Corporation has the higher net margin (20.5% vs 18.2%) and the higher return on invested capital (10.3% vs 7.36%). Both pay a dividend; Expand Energy Corporation yields more (3.86% vs 1.69%). Across the 22 metrics below, Expand Energy Corporation leads on 11 and SM Energy Company on 11.

Valuation

Metric EXE SM Oil & Gas E&P median
P/E 7.46 6.65 10.57
P/S 1.52 1.47 1.80
P/B 1.07 1.04 1.27
Price to free cash flow 8.03 4.94 9.99
EV/EBITDA 3.81 4.66 5.08
EV/Sales 1.80 2.79 2.39
Earnings yield 13.40% 15.04% 6.06%
Free cash flow yield 12.45% 20.24% 6.17%

Profitability

Metric EXE SM Oil & Gas E&P median
Gross margin 80.66% 74.16% 80.41%
Operating margin 26.94% 29.59% 21.39%
Net margin 20.46% 18.20% 14.17%
Free cash flow margin 18.94% 29.85% 9.71%
Return on equity 14.89% 16.13% 10.05%
Return on assets 9.97% 7.18% 5.81%
Return on invested capital 10.25% 7.36% 6.32%

Growth

Metric EXE SM Oil & Gas E&P median
Revenue growth (TTM) 59.29% 75.36% 9.94%
EPS growth (last fiscal year) 266.37% (15.44%) —
Revenue growth, 5-year CAGR 18.27% 22.86% 18.67%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric EXE SM Oil & Gas E&P median
Debt to equity 0.19 0.85 0.28
Current ratio 0.96 0.62 0.96
Net debt to EBITDA 0.82 1.06 0.91

Dividend

Metric EXE SM Oil & Gas E&P median
Dividend yield 3.86% 1.69% 4.93%
Payout ratio 0.19 0.05 0.07

Size

Metric EXE SM Oil & Gas E&P median
Market cap 20.07b 8.28b 923.59m

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