Rowan Companies (NYSE:RDC) and Infinity Energy Resources (OTCMKTS:IFNY) 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 earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.

Earnings & Valuation

This table compares Rowan Companies and Infinity Energy Resources’ 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 -$2.41 million N/A N/A

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

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 -9,427.38%

Institutional & Insider Ownership

99.1% of Rowan Companies shares are owned by institutional investors. 1.6% of Rowan Companies shares are owned by company insiders. Comparatively, 10.5% of Infinity Energy Resources shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rowan Companies 1 8 8 0 2.41
Infinity Energy Resources 0 0 0 0 N/A

Rowan Companies presently has a consensus target price of $14.49, suggesting a potential upside of 32.53%. Given Rowan Companies’ higher probable upside, equities analysts clearly believe Rowan Companies is more favorable than Infinity Energy Resources.

Risk & Volatility

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

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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