Canadian Natural Resources Ltd (CNQ)vsSM Energy Co (SM)
CNQ
Canadian Natural Resources Ltd
$50.32
+0.50%
ENERGY · Cap: $103.22B
SM
SM Energy Co
$39.04
+2.45%
ENERGY · Cap: $9.03B
Smart Verdict
WallStSmart Research — data-driven comparison
Canadian Natural Resources Ltd generates 800% more annual revenue ($44.68B vs $4.96B). CNQ leads profitability with a 26.3% profit margin vs 20.2%. SM appears more attractively valued with a PEG of 0.67. SM earns a higher WallStSmart Score of 90/100 (A).
CNQ
Strong Buy79
out of 100
Grade: B+
SM
Exceptional Buy90
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+47.9%
Fair Value
$96.11
Current Price
$50.32
$45.79 discount
Margin of Safety
+66.3%
Fair Value
$113.35
Current Price
$39.03
$74.31 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 43.1%
Revenue surging 69.5% year-over-year
Earnings expanding 83.8% YoY
Large-cap with strong market position
Every $100 of equity generates 25 in profit
Keeps 26 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 60.3%
Revenue surging 176.1% year-over-year
Earnings expanding 153.9% YoY
Keeps 20 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
Grey zone — moderate risk
ROE of 2.3% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull Case : CNQ
The strongest argument for CNQ centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 26.3% and operating margin at 43.1%. Revenue growth of 69.5% demonstrates continued momentum.
Bull Case : SM
The strongest argument for SM centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 20.2% and operating margin at 60.3%. Revenue growth of 176.1% demonstrates continued momentum.
Bear Case : CNQ
The primary concerns for CNQ are PEG Ratio.
Bear Case : SM
The primary concerns for SM are Altman Z-Score, Return on Equity.
Key Dynamics to Monitor
CNQ carries more volatility with a beta of 0.88 — expect wider price swings.
SM is growing revenue faster at 176.1% — sustainability is the question.
CNQ generates stronger free cash flow (4.4B), providing more financial flexibility.
Monitor OIL & GAS E&P industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SM scores higher overall (90/100 vs 79/100), backed by strong 20.2% margins and 176.1% revenue growth. CNQ offers better value entry with a 47.9% margin of safety. Both earn "Exceptional Buy" and "Strong 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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