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 is the larger, with a market value of $11.7B against $7.1B — 1.7× the size. SM Energy Company trades at the lower P/E: 7.2× against 13.3×. SM Energy Company grew revenue faster over the last twelve months: 107.6% against 20.8%. Range Resources Corporation has the higher net margin (25.2% vs 13.7%) and the higher return on invested capital (13.9% vs 7.24%). Both pay a dividend; SM Energy Company yields more (2.89% vs 0.78%). 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 13.26 7.18 9.67
P/S 3.32 1.03 1.76
P/B 2.41 0.91 1.19
Price to free cash flow 16.14 3.60 8.37
EV/EBITDA 8.01 4.40 4.59
EV/Sales 3.72 2.11 2.27
Earnings yield 7.54% 13.92% 7.55%
Free cash flow yield 6.20% 27.76% 3.98%

Profitability

Metric RRC SM Oil & Gas E&P median
Gross margin 93.33% 74.25% 79.54%
Operating margin 35.54% 23.57% 24.01%
Net margin 25.21% 13.69% 14.11%
Free cash flow margin 20.59% 28.56% 7.72%
Return on equity 19.61% 15.02% 8.99%
Return on assets 11.99% 6.69% 4.63%
Return on invested capital 13.87% 7.24% 6.33%

Growth

Metric RRC SM Oil & Gas E&P median
Revenue growth (TTM) 20.84% 107.58% 13.60%
EPS growth (last fiscal year) 151.38% (15.44%) (10.17%)
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 0.16 0.85 0.29
Current ratio 0.74 0.57 0.92
Net debt to EBITDA 0.89 1.06 0.93

Dividend

Metric RRC SM Oil & Gas E&P median
Dividend yield 0.78% 2.89% 3.76%
Payout ratio 0.10 0.21 0.33

Size

Metric RRC SM Oil & Gas E&P median
Market cap 11.73b 7.05b 953.29m

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