Head to Head Contrast: SM Energy (NYSE:SM) vs. Prairie Operating (NASDAQ:PROP)

SM Energy (NYSE:SM) and Prairie Operating (NASDAQ:PROP) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Insider & Institutional Ownership

94.6% of SM Energy shares are held by institutional investors. Comparatively, 34.3% of Prairie Operating shares are held by institutional investors. 1.5% of SM Energy shares are held by insiders. Comparatively, 42.0% of Prairie Operating shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares SM Energy and Prairie Operating’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SM Energy	31.80%	20.10%	11.34%
Prairie Operating	N/A	-1,088.01%	-159.22%

Analyst Ratings

This is a summary of current recommendations for SM Energy and Prairie Operating, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SM Energy	0	4	6	0	2.60
Prairie Operating	0	0	0	0	N/A

SM Energy presently has a consensus target price of $54.89, suggesting a potential upside of 25.72%. Given SM Energy’s higher possible upside, analysts plainly believe SM Energy is more favorable than Prairie Operating.

Risk & Volatility

SM Energy has a beta of 4.2, meaning that its stock price is 320% more volatile than the S&P 500. Comparatively, Prairie Operating has a beta of 1.96, meaning that its stock price is 96% more volatile than the S&P 500.

Valuation & Earnings

This table compares SM Energy and Prairie Operating’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SM Energy	$2.37 billion	2.12	$817.88 million	$6.38	6.84
Prairie Operating	$1.55 million	88.63	-$79.08 million	N/A	N/A

SM Energy has higher revenue and earnings than Prairie Operating.

Summary

SM Energy beats Prairie Operating on 9 of the 11 factors compared between the two stocks.

About SM Energy

SM Energy Company, an independent energy company, engages in the acquisition, exploration, development, and production of oil, gas, and natural gas liquids in the state of Texas. It has working interests in oil and gas producing wells in the Midland Basin and South Texas. The company was formerly known as St. Mary Land & Exploration Company and changed its name to SM Energy Company in May 2010. SM Energy Company was founded in 1908 and is headquartered in Denver, Colorado.

About Prairie Operating

Prairie Operating Co., an independent energy company, engages in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States. The company holds assets in the Denver-Julesburg Basin in Colorado; and the Niobrara and Codell formations. Prairie Operating Co. is based in Houston Texas.