Matador Resources Company (MTDR) vs SM Energy Company (SM)

Matador Resources Company and SM Energy Company are both Oil & Gas E&P companies. SM Energy Company is the larger, with a market value of $8.3B against $6.4B — 1.3× the size. SM Energy Company trades at the lower P/E: 6.6× against 8.8×. SM Energy Company grew revenue faster over the last twelve months: 75.4% against −3.56%. Matador Resources Company has the higher net margin (19.9% vs 18.2%) and the lower return on invested capital (7.06% vs 7.36%). Both pay a dividend; SM Energy Company yields more (1.69% vs 1.20%). Across the 22 metrics below, SM Energy Company leads on 13 and Matador Resources Company on 9.

Valuation

Metric MTDR SM Oil & Gas E&P median
P/E 8.84 6.65 10.57
P/S 1.76 1.47 1.80
P/B 1.02 1.04 1.27
Price to free cash flow 7.26 4.94 9.99
EV/EBITDA 4.37 4.66 5.08
EV/Sales 2.89 2.79 2.39
Earnings yield 11.31% 15.04% 6.06%
Free cash flow yield 13.77% 20.24% 6.17%

Profitability

Metric MTDR SM Oil & Gas E&P median
Gross margin 91.66% 74.16% 80.41%
Operating margin 32.18% 29.59% 21.39%
Net margin 19.85% 18.20% 14.17%
Free cash flow margin 24.18% 29.85% 9.71%
Return on equity 12.08% 16.13% 10.05%
Return on assets 5.84% 7.18% 5.81%
Return on invested capital 7.06% 7.36% 6.32%

Growth

Metric MTDR SM Oil & Gas E&P median
Revenue growth (TTM) (3.56%) 75.36% 9.94%
EPS growth (last fiscal year) (14.71%) (15.44%) —
Revenue growth, 5-year CAGR 33.79% 22.86% 18.67%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric MTDR SM Oil & Gas E&P median
Debt to equity 0.67 0.85 0.28
Current ratio 0.65 0.62 0.96
Net debt to EBITDA 1.36 1.06 0.91

Dividend

Metric MTDR SM Oil & Gas E&P median
Dividend yield 1.20% 1.69% 4.93%
Payout ratio 0.07 0.05 0.07

Size

Metric MTDR SM Oil & Gas E&P median
Market cap 6.43b 8.28b 923.59m

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