Head-To-Head Review: FEC Resources (OTCMKTS:FECOF) versus SM Energy (NYSE:SM)

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

Earnings & Valuation

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

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

SM Energy has higher revenue and earnings than FEC Resources.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for SM Energy and FEC Resources, as provided by MarketBeat.com.

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

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

Profitability

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

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

Insider & Institutional Ownership

94.6% of SM Energy shares are owned by institutional investors. Comparatively, 0.0% of FEC Resources shares are owned by institutional investors. 1.5% of SM Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

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

Summary

SM Energy beats FEC Resources on 10 of the 12 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 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.