Reviewing SM Energy (NYSE:SM) and TETRA Technologies (NYSE:TTI)

SM Energy (NYSE:SMGet Rating) and TETRA Technologies (NYSE:TTIGet Rating) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Profitability

This table compares SM Energy and TETRA Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SM Energy 11.07% 26.11% 9.27%
TETRA Technologies 0.53% 6.51% 1.61%

Institutional and Insider Ownership

86.5% of SM Energy shares are held by institutional investors. Comparatively, 66.1% of TETRA Technologies shares are held by institutional investors. 1.6% of SM Energy shares are held by insiders. Comparatively, 4.4% of TETRA Technologies shares are held 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.

Risk and Volatility

SM Energy has a beta of 5.17, indicating that its share price is 417% more volatile than the S&P 500. Comparatively, TETRA Technologies has a beta of 2.84, indicating that its share price is 184% more volatile than the S&P 500.

Earnings and Valuation

This table compares SM Energy and TETRA Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SM Energy $2.62 billion 1.88 $36.23 million $2.63 15.38
TETRA Technologies $388.27 million 1.43 $103.33 million $0.02 217.11

TETRA Technologies has lower revenue, but higher earnings than SM Energy. SM Energy is trading at a lower price-to-earnings ratio than TETRA Technologies, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for SM Energy and TETRA Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SM Energy 1 1 6 0 2.63
TETRA Technologies 0 0 0 0 N/A

SM Energy currently has a consensus target price of $50.25, suggesting a potential upside of 24.26%. Given SM Energy’s higher probable upside, equities analysts clearly believe SM Energy is more favorable than TETRA Technologies.

Summary

SM Energy beats TETRA Technologies on 10 of the 13 factors compared between the two stocks.

About SM Energy (Get Rating)

SM Energy Company, an independent energy company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in the state of Texas. As of February 24, 2022, it had 492.0 million barrels of oil equivalent of estimated proved reserves. It also has working interests in 825 gross productive oil wells and 483 gross productive gas 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 TETRA Technologies (Get Rating)

TETRA Technologies, Inc., together with its subsidiaries, operates as a diversified oil and gas services company. It operates through Completion Fluids & Products Division and Water & Flowback Services segments. The Completion Fluids & Products segment manufactures and markets clear brine fluids, additives, and associated products and services to the oil and gas industry for use in well drilling, completion, and workover operations in the United States, as well as in Latin America, Europe, Asia, the Middle East, and Africa. This segment also markets liquid and dry calcium chloride products. The Water & Flowback Services segment provides water management services for onshore oil and gas operators. This segment also offers frac flowback, production well testing, and other associated services in oil and gas producing regions in the United States and Mexico, as well as in various basins in Latin America, Africa, Europe, and the Middle East. The company was incorporated in 1981 and is headquartered in The Woodlands, Texas.

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