Analyzing Smart Sand (NASDAQ:SND) & Liberty Energy (NYSE:LBRT)

Liberty Energy (NYSE:LBRT) and Smart Sand (NASDAQ:SND) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.

Earnings and Valuation

This table compares Liberty Energy and Smart Sand”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Liberty Energy	$4.01 billion	1.18	$147.87 million	$0.89	32.78
Smart Sand	$330.15 million	0.49	$1.35 million	$0.03	123.50

Liberty Energy has higher revenue and earnings than Smart Sand. Liberty Energy is trading at a lower price-to-earnings ratio than Smart Sand, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for Liberty Energy and Smart Sand, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Liberty Energy	0	7	7	0	2.50
Smart Sand	0	1	0	0	2.00

Liberty Energy presently has a consensus price target of $26.42, indicating a potential downside of 9.45%. Given Liberty Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Liberty Energy is more favorable than Smart Sand.

Risk & Volatility

Liberty Energy has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, Smart Sand has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500.

Profitability

This table compares Liberty Energy and Smart Sand’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Liberty Energy	3.69%	1.24%	0.73%
Smart Sand	0.41%	-8.67%	-6.01%

Insider & Institutional Ownership

98.2% of Liberty Energy shares are held by institutional investors. Comparatively, 35.2% of Smart Sand shares are held by institutional investors. 1.9% of Liberty Energy shares are held by insiders. Comparatively, 32.3% of Smart Sand shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Liberty Energy beats Smart Sand on 12 of the 14 factors compared between the two stocks.

About Liberty Energy

Liberty Energy Inc. provides hydraulic services and related technologies to onshore oil and natural gas exploration, and production companies in North America. The company offers hydraulic fracturing services, including complementary services, such as wireline services, proppant delivery solutions, field gas processing and treating, compressed natural gas (CNG) delivery, data analytics, related goods comprising sand mine operations, and technologies; and well site fueling and logistics. As of as of December 31, 2023, the company owned and operated a fleet of approximately 40 active hydraulic fracturing; and two sand mines in the Permian Basin. In addition, the company provides services primarily in the Permian Basin, the Williston Basin, the Eagle Ford Shale, the Haynesville Shale, the Appalachian Basin (Marcellus Shale and Utica Shale), the Western Canadian Sedimentary Basin, the Denver-Julesburg Basin (the DJ Basin), and the Anadarko Basin. Liberty Energy Inc. was formerly known as Liberty Oilfield Services Inc. and changed its name to Liberty Energy Inc. in April 2022. The company was founded in 2011 and is headquartered in Denver, Colorado.

About Smart Sand

Smart Sand, Inc., an integrated frac and industrial sand supply and services company, engages in the excavation, processing, and sale of sands or proppant for use in hydraulic fracturing operations in the oil and gas industry in the United States. It also provides proppant logistics services; and wellsite storage solutions through SmartSystems products and services. The company sells its products primarily to oil and natural gas exploration and production companies, oilfield service companies, and industrial manufacturers. Smart Sand, Inc. was incorporated in 2011 and is headquartered in Spring, Texas.