Analyzing PostRock Energy (OTCMKTS:PSTRQ) and SM Energy (NYSE:SM)

PostRock Energy (OTCMKTS:PSTRQ) and SM Energy (NYSE:SM) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Risk and Volatility

PostRock Energy has a beta of -9.07, meaning that its share price is 1,007% less volatile than the S&P 500. Comparatively, SM Energy has a beta of 4.18, meaning that its share price is 318% more volatile than the S&P 500.

Institutional & Insider Ownership

94.6% of SM Energy shares are owned by institutional investors. 79.2% of PostRock Energy shares are owned by insiders. Comparatively, 1.5% of SM Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PostRock Energy	N/A	N/A	N/A
SM Energy	33.18%	21.01%	11.99%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PostRock Energy	N/A	N/A	N/A	N/A	N/A
SM Energy	$2.44 billion	1.98	$817.88 million	$6.38	6.60

SM Energy has higher revenue and earnings than PostRock Energy.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for PostRock Energy and SM Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PostRock Energy	0	0	0	0	N/A
SM Energy	0	4	7	1	2.75

SM Energy has a consensus target price of $53.22, indicating a potential upside of 26.42%.

Summary

SM Energy beats PostRock Energy on 8 of the 9 factors compared between the two stocks.

About PostRock Energy

PostRock Energy Corp. engages in the acquisition, exploration, development, production, and gathering of crude oil and natural gas. It focuses on the Cherokee Basin project in southeastern Kansas, northeastern Oklahoma, and central Oklahoma. The firm also owns and operates minor oil and gas producing properties in the Appalachian Basin. The company was founded in July 2009 and is headquartered in Oklahoma City, OK.

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.