Canadian Natural Resources Ltd (CNQ)vsSM Energy Co (SM)
CNQ
Canadian Natural Resources Ltd
$45.70
-0.31%
ENERGY · Cap: $98.47B
SM
SM Energy Co
$33.95
-0.42%
ENERGY · Cap: $7.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Canadian Natural Resources Ltd generates 968% more annual revenue ($38.63B vs $3.62B). CNQ leads profitability with a 25.1% profit margin vs 3.6%. SM appears more attractively valued with a PEG of 0.54. CNQ earns a higher WallStSmart Score of 58/100 (C).
CNQ
Buy58
out of 100
Grade: C
SM
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+45.4%
Fair Value
$83.74
Current Price
$45.70
$38.04 discount
Margin of Safety
+61.7%
Fair Value
$84.07
Current Price
$33.95
$50.12 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Large-cap with strong market position
Keeps 25 of every $100 in revenue as profit
Reasonable price relative to book value
Strong operational efficiency at 21.8%
Reasonable price relative to book value
Revenue surging 73.0% year-over-year
Growing faster than its price suggests
Attractively priced relative to earnings
Areas to Watch
Expensive relative to growth rate
Revenue declined 1.2%
Earnings declined 45.3%
Grey zone — moderate risk
ROE of 2.3% — below average capital efficiency
3.6% margin — thin
Earnings declined 42.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : CNQ
The strongest argument for CNQ centers on P/E Ratio, Return on Equity, Market Cap. Profitability is solid with margins at 25.1% and operating margin at 21.8%.
Bull Case : SM
The strongest argument for SM centers on Price/Book, Revenue Growth, PEG Ratio. Revenue growth of 73.0% demonstrates continued momentum. PEG of 0.54 suggests the stock is reasonably priced for its growth.
Bear Case : CNQ
The primary concerns for CNQ are PEG Ratio, Revenue Growth, EPS Growth.
Bear Case : SM
The primary concerns for SM are Altman Z-Score, Return on Equity, Profit Margin. Thin 3.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
CNQ profiles as a declining stock while SM is a hypergrowth play — different risk/reward profiles.
CNQ carries more volatility with a beta of 0.91 — expect wider price swings.
SM is growing revenue faster at 73.0% — sustainability is the question.
CNQ generates stronger free cash flow (856M), providing more financial flexibility.
Bottom Line
CNQ scores higher overall (58/100 vs 53/100), backed by strong 25.1% margins. SM offers better value entry with a 61.7% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Canadian Natural Resources Ltd
ENERGY · OIL & GAS E&P · USA
Canadian Natural Resources Limited acquires, explores, develops, produces, markets and sells crude oil, natural gas and natural gas liquids (NGL). The company is headquartered in Calgary, Canada.
SM Energy Co
ENERGY · OIL & GAS E&P · USA
SM Energy Company, an independent energy company, is engaged in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in the state of Texas. The company is headquartered in Denver, Colorado.
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