Reviewing Groove Botanicals (OTCMKTS:GRVE) & SM Energy (NYSE:SM)

Groove Botanicals (OTCMKTS:GRVE) and SM Energy (NYSE:SM) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Profitability

This table compares Groove Botanicals and SM Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Groove Botanicals	N/A	N/A	-5,800.49%
SM Energy	28.63%	19.82%	10.59%

Earnings and Valuation

This table compares Groove Botanicals and SM Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Groove Botanicals	N/A	N/A	-$200,000.00	N/A	N/A
SM Energy	$2.95 billion	0.95	$817.88 million	$7.14	3.43

SM Energy has higher revenue and earnings than Groove Botanicals.

Volatility and Risk

Groove Botanicals has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, SM Energy has a beta of 2.17, indicating that its share price is 117% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Groove Botanicals and SM Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Groove Botanicals	0	0	0	0	0.00
SM Energy	0	6	6	1	2.62

SM Energy has a consensus price target of $42.92, indicating a potential upside of 75.29%. Given SM Energy’s stronger consensus rating and higher possible upside, analysts clearly believe SM Energy is more favorable than Groove Botanicals.

Insider & Institutional Ownership

94.6% of SM Energy shares are held by institutional investors. 55.1% of Groove Botanicals shares are held by insiders. Comparatively, 1.5% of SM Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

SM Energy beats Groove Botanicals on 11 of the 12 factors compared between the two stocks.

About Groove Botanicals

Groove Botanicals, Inc. operates as an independent oil and gas producer. It also focuses on assembling a portfolio of EV battery technologies. The company was formerly known as Avalon Oil & Gas, Inc. and changed its name to Groove Botanicals, Inc. in May 2018. Groove Botanicals, Inc. was incorporated in 1991 and is headquartered in Minneapolis, Minnesota.

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.