Infinity Natural Resources Inc. (INR) vs W&T Offshore, Inc. (WTI)

Infinity Natural Resources Inc. and W&T Offshore, Inc. are both Oil & Gas E&P companies. Infinity Natural Resources Inc. is the larger, with a market value of $824.5M against $552.5M — 1.5× the size. W&T Offshore, Inc. has negative trailing earnings, so its P/E is not meaningful; Infinity Natural Resources Inc. trades at 4.5×. Infinity Natural Resources Inc. grew revenue faster over the last twelve months: 75.4% against 13.8%. Infinity Natural Resources Inc. has the higher net margin (9.70% vs −19.3%) and the lower return on invested capital (14.7% vs 74.1%). Across the 16 metrics below, Infinity Natural Resources Inc. leads on 9 and W&T Offshore, Inc. on 7.

Valuation

Metric INR WTI Oil & Gas E&P median
P/E 4.47 n/m 11.01
P/S 0.48 1.02 1.98
P/B 0.63 n/m 1.30
Price to free cash flow n/m 15.16 10.68
EV/EBITDA 2.13 5.09 5.09
EV/Sales 1.46 1.38 2.63
Earnings yield 22.36% (19.06%) 5.78%
Free cash flow yield (70.79%) 6.60% 4.91%

Profitability

Metric INR WTI Oil & Gas E&P median
Gross margin 85.21% 43.34% 80.41%
Operating margin 40.95% 0.99% 21.39%
Net margin 9.70% (19.32%) 14.17%
Free cash flow margin (33.88%) 6.73% 8.18%
Return on equity 24.78% 72.64% 10.05%
Return on assets 3.16% (10.95%) 5.81%
Return on invested capital 14.68% 74.05% 6.32%

Growth

Metric INR WTI Oil & Gas E&P median
Revenue growth (TTM) 75.40% 13.75% 9.94%
EPS growth (last fiscal year) — (71.19%) (10.50%)
Revenue growth, 5-year CAGR — 7.66% 18.67%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric INR WTI Oil & Gas E&P median
Debt to equity 1.35 (1.79) 0.28
Current ratio 0.87 1.17 0.96
Net debt to EBITDA 0.74 2.09 0.89

Dividend

Metric INR WTI Oil & Gas E&P median
Dividend yield — 1.04% 3.29%
Payout ratio — — 0.35

Size

Metric INR WTI Oil & Gas E&P median
Market cap 824.49m 552.45m 1.04b

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