Genesis Energy (NYSE:GEL – Get Free Report) and Infinity Natural Resources (NYSE:INR – Get Free Report) are both small-cap energy companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.
Institutional and Insider Ownership
66.8% of Genesis Energy shares are held by institutional investors. 0.7% of Genesis Energy shares are held by company insiders. Comparatively, 40.9% of Infinity Natural Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Genesis Energy has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Infinity Natural Resources has a beta of -0.43, indicating that its share price is 143% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations for Genesis Energy and Infinity Natural Resources, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Genesis Energy | 0 | 1 | 2 | 0 | 2.67 |
| Infinity Natural Resources | 1 | 1 | 5 | 2 | 2.89 |
Genesis Energy presently has a consensus target price of $17.50, indicating a potential upside of 34.14%. Infinity Natural Resources has a consensus target price of $21.83, indicating a potential upside of 65.97%. Given Infinity Natural Resources’ stronger consensus rating and higher probable upside, analysts plainly believe Infinity Natural Resources is more favorable than Genesis Energy.
Profitability
This table compares Genesis Energy and Infinity Natural Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Genesis Energy | 3.85% | 57.46% | 1.41% |
| Infinity Natural Resources | 7.86% | 46.53% | 7.46% |
Earnings and Valuation
This table compares Genesis Energy and Infinity Natural Resources”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Genesis Energy | $1.63 billion | 0.98 | -$440.40 million | $0.19 | 68.66 |
| Infinity Natural Resources | $356.43 million | 2.34 | $13.84 million | $2.50 | 5.26 |
Infinity Natural Resources has lower revenue, but higher earnings than Genesis Energy. Infinity Natural Resources is trading at a lower price-to-earnings ratio than Genesis Energy, indicating that it is currently the more affordable of the two stocks.
Summary
Infinity Natural Resources beats Genesis Energy on 10 of the 15 factors compared between the two stocks.
About Genesis Energy
Genesis Energy, L.P. is a midstream energy company that owns and operates infrastructure for transporting and handling crude oil and other energy-related products. Its businesses include offshore pipeline transportation, onshore facilities and transportation, marine transportation, and soda and sulfur services. In the Gulf of Mexico, the company gathers and transports crude oil through offshore pipelines. Its marine fleet of vessels and barges supports the movement of crude oil and other products, while its onshore facilities and transportation operations provide related storage and logistics services.
About Infinity Natural Resources
Infinity Natural Resources is an independent energy company focused on acquiring, developing and producing oil and natural gas. Its operations are concentrated in the Appalachian Basin, where it produces natural gas, natural gas liquids and oil from formations including the Utica and Marcellus shale. Based in Morgantown, West Virginia, the company’s assets are located in the Appalachian region, including Ohio and Pennsylvania. Infinity was founded in 2017, and Zack Arnold serves as its president and chief executive officer.
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