Canadian Natural Resources Ltd (CNQ)vsSM Energy Co (SM)
CNQ
Canadian Natural Resources Ltd
$49.02
+1.32%
ENERGY · Cap: $102.25B
SM
SM Energy Co
$31.50
+3.79%
ENERGY · Cap: $7.51B
Smart Verdict
WallStSmart Research — data-driven comparison
Canadian Natural Resources Ltd generates 1181% more annual revenue ($38.76B vs $3.03B). CNQ leads profitability with a 27.9% profit margin vs 21.4%. CNQ appears more attractively valued with a PEG of 3.42. CNQ earns a higher WallStSmart Score of 67/100 (B-).
CNQ
Strong Buy67
out of 100
Grade: B-
SM
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+76.9%
Fair Value
$175.97
Current Price
$49.02
$126.95 discount
Margin of Safety
+42.9%
Fair Value
$38.35
Current Price
$31.50
$6.85 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Every $100 of equity generates 26 in profit
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 2.3B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 21 of every $100 in revenue as profit
Strong operational efficiency at 26.9%
Areas to Watch
1.5% revenue growth
3.7% earnings growth
Expensive relative to growth rate
Expensive relative to growth rate
Revenue declined 17.1%
Earnings declined 42.3%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : CNQ
The strongest argument for CNQ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 27.9% and operating margin at 19.6%.
Bull Case : SM
The strongest argument for SM centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 21.4% and operating margin at 26.9%.
Bear Case : CNQ
The primary concerns for CNQ are Revenue Growth, EPS Growth, PEG Ratio.
Bear Case : SM
The primary concerns for SM are PEG Ratio, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
CNQ profiles as a value stock while SM is a declining play — different risk/reward profiles.
CNQ carries more volatility with a beta of 1.06 — expect wider price swings.
CNQ is growing revenue faster at 1.5% — sustainability is the question.
CNQ generates stronger free cash flow (2.3B), providing more financial flexibility.
Bottom Line
CNQ scores higher overall (67/100 vs 52/100), backed by strong 27.9% margins. SM offers better value entry with a 42.9% 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.
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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