Legacy Reserves (OTCMKTS:LGCYQ) vs. SM Energy (NYSE:SM) Head-To-Head Survey

Legacy Reserves (OTCMKTS:LGCYQ – Get Free Report) and SM Energy (NYSE:SM – Get Free Report) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Profitability

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

Institutional & Insider Ownership

94.6% of SM Energy shares are owned by institutional investors. 0.8% of Legacy Reserves shares are owned by company insiders. Comparatively, 0.5% of SM Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Legacy Reserves and SM Energy, as provided by MarketBeat.com.

SM Energy has a consensus price target of $37.07, suggesting a potential upside of 36.72%. Given SM Energy’s stronger consensus rating and higher probable upside, analysts clearly believe SM Energy is more favorable than Legacy Reserves.

Earnings and Valuation

This table compares Legacy Reserves and SM Energy”s gross revenue, earnings per share and valuation.

SM Energy has higher revenue and earnings than Legacy Reserves.

Summary

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

About Legacy Reserves

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Legacy Reserves Inc., an independent energy company, engages in the acquisition, development, and production of oil and natural gas properties in the United States. It focuses on the horizontal development of unconventional plays in the Permian Basin and the management of shallow-decline oil and natural gas wells in the regions of Permian Basin, East Texas, Rocky Mountain, and Mid-Continent. As of December 31, 2018, the company had proved reserves of approximately 164.9 million barrels of crude oil equivalent covering natural gas, as well as oil and natural gas liquids. Legacy Reserves Inc. was founded in 2005 and is based in Midland, Texas. On June 18, 2019, Legacy Reserves Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

About SM Energy

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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.