Dxi Energy (OTCMKTS:DXIEF) vs. SM Energy (OTCMKTS:SM) Critical Review

Dxi Energy (OTCMKTS:DXIEF) and SM Energy (NYSE:SM) are both small-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Insider & Institutional Ownership

98.9% of SM Energy shares are held by institutional investors. 1.0% of SM Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

SM Energy pays an annual dividend of $0.10 per share and has a dividend yield of 0.9%. Dxi Energy does not pay a dividend. SM Energy pays out 333.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of current ratings and recommmendations for Dxi Energy and SM Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dxi Energy 0 0 0 0 N/A
SM Energy 1 8 12 0 2.52

SM Energy has a consensus price target of $25.13, indicating a potential upside of 132.29%. Given SM Energy’s higher possible upside, analysts clearly believe SM Energy is more favorable than Dxi Energy.

Earnings and Valuation

This table compares Dxi Energy and SM Energy’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dxi Energy $1.35 million 3.89 -$8.97 million N/A N/A
SM Energy $2.07 billion 0.59 $508.41 million $0.03 360.67

SM Energy has higher revenue and earnings than Dxi Energy.

Profitability

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

Net Margins Return on Equity Return on Assets
Dxi Energy -710.42% N/A -159.46%
SM Energy 0.82% -1.52% -0.65%

Volatility and Risk

Dxi Energy has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500. Comparatively, SM Energy has a beta of 2.98, indicating that its share price is 198% more volatile than the S&P 500.

Summary

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

Dxi Energy Company Profile

DXI Energy Inc. acquires, explores for, and develops energy projects with a focus on oil and gas exploration in Canada and the United States. It holds interests in the Kokopelli project that covers an area of approximately 7,100 square miles with reserves of coal, oil shale, and natural gas located in Piceance Basin, Western Colorado; and Woodrush project consisting of 13,093 net acres situated in the Peace River Arch of British Columbia and Alberta. The company was formerly known as Dejour Energy Inc. and changed its name to DXI Energy Inc. in October 2015. DXI Energy Inc. was incorporated in 1968 and is headquartered in Vancouver, Canada.

SM Energy Company Profile

SM Energy Company, an independent energy company, engages in the acquisition, exploration, development, and production of crude oil and condensate, natural gas, and natural gas liquids in onshore North America. As of December 31, 2018, the company had 503.4 million barrels of oil equivalent of estimated proved reserves; and working interests in 715 gross productive oil wells and 504 gross productive gas wells primarily in the Permian, South Texas, and Gulf Coast regions in the United States. 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.

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