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 $848.6M against $589.8M — 1.4× the size. W&T Offshore, Inc. has negative trailing earnings, so its P/E is not meaningful; Infinity Natural Resources Inc. trades at 4.4×. 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 4.37 n/m 10.57
P/S 0.47 0.97 1.80
P/B 0.61 n/m 1.27
Price to free cash flow n/m 14.45 9.99
EV/EBITDA 2.11 4.91 5.08
EV/Sales 1.45 1.33 2.39
Earnings yield 22.89% (20.00%) 6.06%
Free cash flow yield (72.47%) 6.92% 6.17%

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% 9.71%
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%) —
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 0.91

Dividend

Metric INR WTI Oil & Gas E&P median
Dividend yield — 0.70% 4.93%
Payout ratio — 0.00 0.07

Size

Metric INR WTI Oil & Gas E&P median
Market cap 848.59m 589.76m 923.59m

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