Diamond Offshore Drilling (NYSE:DO) and Infinity Energy Resources (OTCMKTS:IFNY) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Risk and Volatility

Diamond Offshore Drilling has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, Infinity Energy Resources has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500.

Earnings & Valuation

This table compares Diamond Offshore Drilling and Infinity Energy Resources’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Diamond Offshore Drilling $1.49 billion 1.05 $18.34 million $0.82 13.79
Infinity Energy Resources N/A N/A -$2.41 million N/A N/A

Diamond Offshore Drilling has higher revenue and earnings than Infinity Energy Resources.

Profitability

This table compares Diamond Offshore Drilling and Infinity Energy Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Diamond Offshore Drilling -11.11% -2.92% -1.77%
Infinity Energy Resources N/A N/A -9,427.38%

Analyst Recommendations

This is a breakdown of current ratings for Diamond Offshore Drilling and Infinity Energy Resources, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diamond Offshore Drilling 11 5 3 0 1.58
Infinity Energy Resources 0 0 0 0 N/A

Diamond Offshore Drilling currently has a consensus target price of $16.28, indicating a potential upside of 43.96%. Given Diamond Offshore Drilling’s higher probable upside, equities research analysts clearly believe Diamond Offshore Drilling is more favorable than Infinity Energy Resources.

Summary

Diamond Offshore Drilling beats Infinity Energy Resources on 6 of the 8 factors compared between the two stocks.

About Diamond Offshore Drilling

Diamond Offshore Drilling, Inc. provides contract drilling services to the energy industry worldwide. It provides services in floater market, including ultra-deepwater, deepwater, and mid-water. The company operates a fleet of 17 offshore drilling rigs, which comprises 4 drillships, 7 ultra-deepwater, 4 deepwater, and 2 mid-water semisubmersibles. It serves independent oil and gas companies, and government-owned oil companies. The company was founded in 1989 and is headquartered in Houston, Texas. Diamond Offshore Drilling, Inc. is a subsidiary of Loews Corporation.

About Infinity Energy Resources

Infinity Energy Resources, Inc., an independent energy company, focuses on the exploration and development of oil and gas resources. It holds 100% interests in the Perlas Block, which covers an area of approximately 560,000 acres/2,268 kilometers; and the Tyra Block that covers an area of 826,000 acres/3,342 kilometers located in shallow waters offshore Nicaragua in the Caribbean Sea. The company was founded in 1987 and is based in Overland Park, Kansas.

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