Nabors Industries (NYSE:NBR) and Infinity Energy Resources (OTCMKTS:IFNY) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.
This table compares Nabors Industries and Infinity Energy Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Infinity Energy Resources||N/A||N/A||-9,427.38%|
Nabors Industries has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, Infinity Energy Resources has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.
Insider & Institutional Ownership
89.0% of Nabors Industries shares are held by institutional investors. 4.2% of Nabors Industries shares are held by insiders. Comparatively, 10.5% of Infinity Energy Resources shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of recent ratings and price targets for Nabors Industries and Infinity Energy Resources, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Infinity Energy Resources||0||0||0||0||N/A|
Nabors Industries currently has a consensus target price of $8.96, suggesting a potential upside of 177.45%. Given Nabors Industries’ higher probable upside, analysts plainly believe Nabors Industries is more favorable than Infinity Energy Resources.
Valuation and Earnings
This table compares Nabors Industries and Infinity Energy Resources’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nabors Industries||$2.57 billion||0.45||-$546.81 million||($1.63)||-1.98|
|Infinity Energy Resources||N/A||N/A||-$2.41 million||N/A||N/A|
Infinity Energy Resources has lower revenue, but higher earnings than Nabors Industries.
Nabors Industries pays an annual dividend of $0.24 per share and has a dividend yield of 7.4%. Infinity Energy Resources does not pay a dividend. Nabors Industries pays out -14.7% of its earnings in the form of a dividend. Nabors Industries has raised its dividend for 4 consecutive years.
Nabors Industries beats Infinity Energy Resources on 9 of the 13 factors compared between the two stocks.
Nabors Industries Company Profile
Nabors Industries Ltd. provides drilling and drilling-related services and technologies for land-based and offshore oil and natural gas wells. It operates through five segments: U.S., Canada, International, Drilling Solutions, and Rig Technologies. The company offers equipment manufacturing, rig instrumentation, optimization software, and directional drilling services. It also provides patented steering systems and rig instrumentation software systems, including ROCKIT directional drilling system that offers data collection services to oil and gas exploration and service companies; REVit control system, a stick slip mitigation system; RIGWATCH software, which monitors a rig's real-time performance and provides daily reporting for drilling operations; and DrillSmart software that allows the drilling system to adapt operating parameters and drilling conditions. In addition, the company offers measurement while drilling (MWD) systems and services, such as AccuMP mud pulse MWD system, which is designed to address the various MWD reliability issues; AccuWave collar mounted Electromagnetic MWD system that addresses the needs of the land market through the technology and design techniques; and Nabors' AccuSteer Measurement While Drilling (M/LWD) Suite, which is a premier dynamics evaluation MWD system for performance drilling with integrated advanced geosteering measurements. Further, it manufactures and sells top drives, catwalks, wrenches, draw works, and other drilling related equipment, such as robotic systems and downhole tools; and provides automated tubular and tool handling equipment. As of December 31, 2017, the company marketed approximately 407 rigs for land-based drilling operations in the United States and Canada, as well as in 20 other countries worldwide; and 38 rigs for offshore drilling operations in the United States and internationally. Nabors Industries Ltd. was founded in 1952 and is headquartered in Hamilton, Bermuda.
Infinity Energy Resources Company Profile
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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