Infinity Energy Resources (OTCMKTS:IFNY) and Rowan Companies (NYSE:RDC) are both small-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.
Earnings and Valuation
This table compares Infinity Energy Resources and Rowan Companies’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Infinity Energy Resources||N/A||N/A||-$290,000.00||N/A||N/A|
|Rowan Companies||$824.80 million||1.69||-$347.40 million||($3.72)||-2.94|
Infinity Energy Resources has higher earnings, but lower revenue than Rowan Companies.
Institutional & Insider Ownership
99.1% of Rowan Companies shares are held by institutional investors. 10.5% of Infinity Energy Resources shares are held by insiders. Comparatively, 1.6% of Rowan Companies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Infinity Energy Resources and Rowan Companies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Infinity Energy Resources||N/A||N/A||-8,922.33%|
This is a summary of recent ratings and target prices for Infinity Energy Resources and Rowan Companies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Infinity Energy Resources||0||0||0||0||N/A|
Rowan Companies has a consensus target price of $14.67, suggesting a potential upside of 34.23%. Given Rowan Companies’ higher possible upside, analysts clearly believe Rowan Companies is more favorable than Infinity Energy Resources.
Risk and Volatility
Infinity Energy Resources has a beta of 2.43, meaning that its share price is 143% more volatile than the S&P 500. Comparatively, Rowan Companies has a beta of 2.52, meaning that its share price is 152% more volatile than the S&P 500.
Rowan Companies beats Infinity Energy Resources on 6 of the 10 factors compared between the two stocks.
About Infinity Energy Resources
Infinity Energy Resources, Inc., an independent energy company, focuses on the exploration and development of oil and gas resources. It holds 100% interests in the Perlas Block, which covers an area of approximately 560,000 acres/2,268 kilometers; and the Tyra Block that covers an area of 826,000 acres/3,342 kilometers located in shallow waters offshore Nicaragua in the Caribbean Sea. The company was founded in 1987 and is based in Overland Park, Kansas.
About Rowan Companies
Rowan Companies plc provides offshore contract drilling services to the oil and gas industry. The company operates through three segments: Deepwater, Jack-ups, and ARO. The Deepwater segment operates 4 ultra-deepwater drillships. The Jack-ups segment operates 15 self-elevating jack-up rigs. The ARO segment operates a fleet of 6 self-elevating jack-up rigs. The company operates in the United States Gulf of Mexico, Central and South America, the United Kingdom, the Middle East, Trinidad, and Norwegian sectors of the North Sea. Rowan Companies plc was founded in 1923 and is based in Houston, Texas.
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