Critical Contrast: Rowan Companies (RDC) & Infinity Energy Resources (IFNY)

Rowan Companies (NYSE:RDC) and Infinity Energy Resources (OTCMKTS:IFNY) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Earnings & Valuation

This table compares Rowan Companies and Infinity Energy Resources’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rowan Companies $824.80 million 1.69 -$347.40 million ($3.72) -2.94
Infinity Energy Resources N/A N/A -$290,000.00 N/A N/A

Infinity Energy Resources has lower revenue, but higher earnings than Rowan Companies.

Insider and Institutional Ownership

99.1% of Rowan Companies shares are held by institutional investors. 1.6% of Rowan Companies shares are held by insiders. Comparatively, 10.5% of Infinity Energy Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Rowan Companies and Infinity Energy Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rowan Companies -42.12% -9.19% -5.78%
Infinity Energy Resources N/A N/A -8,922.33%

Risk and Volatility

Rowan Companies has a beta of 2.52, meaning that its stock price is 152% more volatile than the S&P 500. Comparatively, Infinity Energy Resources has a beta of 2.28, meaning that its stock price is 128% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Rowan Companies and Infinity Energy Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rowan Companies 1 7 8 0 2.44
Infinity Energy Resources 0 0 0 0 N/A

Rowan Companies currently has a consensus price target of $14.67, indicating a potential upside of 34.23%. Given Rowan Companies’ higher possible upside, analysts plainly believe Rowan Companies is more favorable than Infinity Energy Resources.

Summary

Rowan Companies beats Infinity Energy Resources on 6 of the 10 factors compared between the two stocks.

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.

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.

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