Occidental Petroleum Corporation (OXY)vsSM Energy Co (SM)
OXY
Occidental Petroleum Corporation
$58.65
+1.93%
ENERGY · Cap: $58.77B
SM
SM Energy Co
$33.95
-0.42%
ENERGY · Cap: $7.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Occidental Petroleum Corporation generates 484% more annual revenue ($21.12B vs $3.62B). OXY leads profitability with a 22.4% profit margin vs 3.6%. SM appears more attractively valued with a PEG of 0.54. OXY earns a higher WallStSmart Score of 65/100 (B-).
OXY
Strong Buy65
out of 100
Grade: B-
SM
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+3.5%
Fair Value
$59.00
Current Price
$58.65
$0.35 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
Earnings expanding 315.6% YoY
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Reasonable price relative to book value
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
Weak financial health signals
Premium valuation, high expectations priced in
Revenue declined 8.3%
Negative free cash flow — burning cash
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 : OXY
The strongest argument for OXY centers on EPS Growth, Market Cap, Profit Margin. Profitability is solid with margins at 22.4% and operating margin at 17.7%. PEG of 1.38 suggests the stock is reasonably priced for its growth.
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 : OXY
The primary concerns for OXY are Piotroski F-Score, P/E Ratio, Revenue Growth. A P/E of 79.8x leaves little room for execution misses.
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
OXY profiles as a declining stock while SM is a hypergrowth play — different risk/reward profiles.
SM carries more volatility with a beta of 0.74 — expect wider price swings.
SM is growing revenue faster at 73.0% — sustainability is the question.
SM generates stronger free cash flow (85M), providing more financial flexibility.
Bottom Line
OXY scores higher overall (65/100 vs 53/100), backed by strong 22.4% margins. SM offers better value entry with a 61.7% margin of safety. Both earn "Strong 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.
Occidental Petroleum Corporation
ENERGY · OIL & GAS E&P · USA
Occidental Petroleum Corporation is an American company engaged in hydrocarbon exploration in the United States, the Middle East, and Colombia as well as petrochemical manufacturing in the United States, Canada, and Chile.
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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