Range Resources Corporation (RRC) vs SM Energy Company (SM)

Range Resources Corporation and SM Energy Company are both Oil & Gas E&P companies. Range Resources Corporation and SM Energy Company are of similar size ($9.7B and $8.9B). SM Energy Company trades at the lower P/E: 7.7× against 11.8×. SM Energy Company grew revenue faster over the last twelve months: 75.4% against 23.2%. Range Resources Corporation has the higher net margin (25.0% vs 18.2%) and the higher return on invested capital (13.7% vs 7.36%). Both pay a dividend; SM Energy Company yields more (2.68% vs 0.90%). Across the 22 metrics below, SM Energy Company leads on 12 and Range Resources Corporation on 10.

Valuation

Metric RRC SM Oil & Gas E&P median
P/E 11.82 7.74 11.01
P/S 2.95 1.72 1.98
P/B 2.15 1.21 1.30
Price to free cash flow 14.88 5.75 10.68
EV/EBITDA 7.26 5.07 5.09
EV/Sales 3.38 3.03 2.63
Earnings yield 8.46% 12.91% 5.78%
Free cash flow yield 6.72% 17.38% 4.91%

Profitability

Metric RRC SM Oil & Gas E&P median
Gross margin 93.07% 74.16% 80.41%
Operating margin 35.59% 29.59% 21.39%
Net margin 25.00% 18.20% 14.17%
Free cash flow margin 19.80% 29.85% 8.18%
Return on equity 19.44% 16.13% 10.05%
Return on assets 11.71% 7.18% 5.81%
Return on invested capital 13.71% 7.36% 6.32%

Growth

Metric RRC SM Oil & Gas E&P median
Revenue growth (TTM) 23.24% 75.36% 9.94%
EPS growth (last fiscal year) 151.38% (15.44%) (10.50%)
Revenue growth, 5-year CAGR 9.62% 22.86% 18.67%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric RRC SM Oil & Gas E&P median
Debt to equity 0.18 0.85 0.28
Current ratio 0.65 0.62 0.96
Net debt to EBITDA 0.89 1.06 0.89

Dividend

Metric RRC SM Oil & Gas E&P median
Dividend yield 0.90% 2.68% 3.29%
Payout ratio 0.11 0.21 0.35

Size

Metric RRC SM Oil & Gas E&P median
Market cap 9.68b 8.92b 1.04b

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