Allied Resources (OTCMKTS:ALOD) and SM Energy (NYSE:SM) Head to Head Review

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

Volatility and Risk

SM Energy has a beta of 2.19, indicating that its share price is 119% more volatile than the S&P 500. Comparatively, Allied Resources has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500.

Institutional and Insider Ownership

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

Valuation and Earnings

This table compares SM Energy and Allied Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SM Energy	$2.95 billion	1.04	$817.88 million	$7.14	3.76
Allied Resources	$130,000.00	5.44	-$270,000.00	($0.02)	-6.25

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SM Energy	28.63%	19.82%	10.59%
Allied Resources	-145.27%	-10.45%	-8.47%

Analyst Recommendations

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

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

SM Energy presently has a consensus target price of $42.42, indicating a potential upside of 57.98%. Given SM Energy’s stronger consensus rating and higher probable upside, equities analysts plainly believe SM Energy is more favorable than Allied Resources.

Summary

SM Energy beats Allied Resources on 14 of the 15 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 Allied Resources

Allied Resources, Inc., an independent oil and natural gas producer, engages in the exploration, development, production, and sale of oil and gas in the United States. It owns varying interests in a total of 145 wells situated on acreage of approximately 3,400 acres in Ritchie and Calhoun counties, West Virginia; and 10 wells situated on acreage of approximately 2,510 acres in Goliad, Edwards, and Jackson counties, Texas. The company was formerly known as General Allied Oil and Gas Co and changed its name to Allied Resources, Inc. in August 1998. Allied Resources, Inc. was founded in 1979 and is based in Salt Lake City, Utah.