Contrasting FEC Resources (OTCMKTS:FECOF) & SM Energy (NYSE:SM)

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

Risk and Volatility

FEC Resources has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, SM Energy has a beta of 4.14, meaning that its share price is 314% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FEC Resources	N/A	131.17%	114.19%
SM Energy	33.89%	19.62%	10.87%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for FEC Resources and SM Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FEC Resources	0	0	0	0	0.00
SM Energy	0	6	6	1	2.62

SM Energy has a consensus target price of $51.90, suggesting a potential upside of 29.32%. Given SM Energy’s stronger consensus rating and higher probable upside, analysts plainly believe SM Energy is more favorable than FEC Resources.

Institutional and Insider Ownership

0.0% of FEC Resources shares are held by institutional investors. Comparatively, 94.6% of SM Energy shares are held by institutional investors. 1.5% of SM Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares FEC Resources and SM Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FEC Resources	N/A	N/A	-$190,000.00	N/A	N/A
SM Energy	$2.37 billion	1.93	$817.88 million	$7.16	5.61

SM Energy has higher revenue and earnings than FEC Resources.

Summary

SM Energy beats FEC Resources on 10 of the 12 factors compared between the two stocks.

About FEC Resources

FEC Resources Inc. engages in the exploration and development of oil and gas properties in the Philippines. The company, through its 6.8% interest in Forum Energy Limited, primarily owns a 70% interest in the GSEC101 offshore license covering an area of approximately 10,360 square kilometers located to the northwest of the Philippine Island of Palawan. FEC Resources Inc. is headquartered in Vancouver, Canada. FEC Resources Inc. operates as a subsidiary of PXP Energy Corporation.

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.