CRC vs SM

For growth investors, California Resources Corporation (CRC) is the stronger pick with 21.

9% revenue growth year-over-year, versus 18. 1% for SM Energy Company (SM). SM Energy Company (SM) offers the better valuation at 5. 1x trailing P/E (4. 3x forward), making it the more compelling value choice. Analysts rate California Resources Corporation (CRC) a "Buy" — based on 23 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, SM Energy Company (SM) is the cheapest at 5.

1x versus California Resources Corporation at 14. 8x. On forward P/E, SM Energy Company is actually cheaper at 4. 3x.

Over the past 5 years, California Resources Corporation (CRC) delivered a total return of +178.

9%, compared to +84. 2% for SM Energy Company (SM). Over 10 years, the gap is even starker: CRC returned +287. 0% versus SM's +118. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), SM Energy Company (SM) is the lower-risk stock at 0.

16β versus California Resources Corporation's 0. 45β — meaning CRC is approximately 171% more volatile than SM relative to the S&P 500. On balance sheet safety, California Resources Corporation (CRC) carries a lower debt/equity ratio of 37% versus 48% for SM Energy Company — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), California Resources Corporation (CRC) is pulling ahead at 21.

9% versus 18. 1% for SM Energy Company (SM). On earnings-per-share growth, the picture is similar: California Resources Corporation grew EPS -10. 2% year-over-year, compared to -15. 4% for SM Energy Company. Over a 3-year CAGR, CRC leads at 3. 4% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

SM Energy Company (SM) is the more profitable company, earning 20.

5% net margin versus 10. 1% for California Resources Corporation — meaning it keeps 20. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SM leads at 26. 1% versus 23. 6% for CRC. At the gross margin level — before operating expenses — CRC leads at 39. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, SM Energy Company (SM) trades at 4.

3x forward P/E versus 12. 1x for California Resources Corporation — 7. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CRC: 11. 2% to $68. 33.

All stocks in this comparison pay dividends.

SM Energy Company (SM) offers the highest yield at 2. 8%, versus 2. 5% for California Resources Corporation (CRC).

For long-horizon retirement investors, SM Energy Company (SM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

16), 2. 8% yield, +118. 0% 10Y return). Both have compounded well over 10 years (SM: +118. 0%, CRC: +287. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Energy sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.