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. is the larger, with a market value of $776.9M against $616.6M — 1.3× the size. Infinity Natural Resources Inc. trades at the lower P/E: 4.0× against 29.9×. 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 4.00 29.94 9.67
P/S 0.44 1.40 1.76
P/B 0.57 0.61 1.19
Price to free cash flow n/m n/m 8.37
EV/EBITDA 2.07 5.42 4.59
EV/Sales 1.42 2.05 2.27
Earnings yield 25.00% 3.34% 7.55%
Free cash flow yield (77.32%) (21.65%) 3.98%

Profitability

Metric INR OBE Oil & Gas E&P median
Gross margin 85.21% 63.83% 79.54%
Operating margin 40.95% 6.70% 24.01%
Net margin 9.70% 4.53% 14.11%
Free cash flow margin (33.88%) (30.26%) 7.72%
Return on equity 24.78% 1.99% 8.99%
Return on assets 3.16% 1.43% 4.63%
Return on invested capital 14.68% 1.47% 6.33%

Growth

Metric INR OBE Oil & Gas E&P median
Revenue growth (TTM) 75.40% (19.29%) 13.60%
EPS growth (last fiscal year) — 117.95% (10.17%)
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 0.29
Current ratio 0.87 0.78 0.92
Net debt to EBITDA 0.74 0.66 0.93

Dividend

Metric INR OBE Oil & Gas E&P median
Dividend yield — — 3.76%
Payout ratio — — 0.33

Size

Metric INR OBE Oil & Gas E&P median
Market cap 776.92m 616.59m 953.29m

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