Infinity Natural Resources Inc. (INR) vs Obsidian Energy (OBE)

Infinity Natural Resources Inc. and Obsidian Energy are both Oil & Gas E&P companies. Infinity Natural Resources Inc. and Obsidian Energy are of similar size ($824.5M and $765.4M). Infinity Natural Resources Inc. trades at the lower P/E: 4.5× against 38.6×. Infinity Natural Resources Inc. grew revenue faster over the last twelve months: 75.4% against −19.3%. Infinity Natural Resources Inc. has the higher net margin (9.70% vs 4.53%) and the higher return on invested capital (14.7% vs 1.47%). Across the 18 metrics below, Infinity Natural Resources Inc. leads on 14 and Obsidian Energy on 4.

Valuation

Metric INR OBE Oil & Gas E&P median
P/E 4.47 38.65 11.01
P/S 0.48 1.80 1.98
P/B 0.63 0.79 1.30
Price to free cash flow n/m n/m 10.68
EV/EBITDA 2.13 6.49 5.09
EV/Sales 1.46 2.46 2.63
Earnings yield 22.36% 2.59% 5.78%
Free cash flow yield (70.79%) (16.77%) 4.91%

Profitability

Metric INR OBE Oil & Gas E&P median
Gross margin 85.21% 63.83% 80.41%
Operating margin 40.95% 6.70% 21.39%
Net margin 9.70% 4.53% 14.17%
Free cash flow margin (33.88%) (30.26%) 8.18%
Return on equity 24.78% 1.99% 10.05%
Return on assets 3.16% 1.43% 5.81%
Return on invested capital 14.68% 1.47% 6.32%

Growth

Metric INR OBE Oil & Gas E&P median
Revenue growth (TTM) 75.40% (19.29%) 9.94%
EPS growth (last fiscal year) — 117.95% (10.50%)
Revenue growth, 5-year CAGR — 15.86% 18.67%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric INR OBE Oil & Gas E&P median
Debt to equity 1.35 0.25 0.28
Current ratio 0.87 0.78 0.96
Net debt to EBITDA 0.74 0.66 0.89

Dividend

Metric INR OBE Oil & Gas E&P median
Dividend yield — — 3.29%
Payout ratio — — 0.35

Size

Metric INR OBE Oil & Gas E&P median
Market cap 824.49m 765.39m 1.04b

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