Head-To-Head Review: Genesis Energy (NYSE:GEL) versus Inpex (OTCMKTS:IPXHY)

Genesis Energy (NYSE:GEL) and Inpex (OTCMKTS:IPXHY) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Insider and Institutional Ownership

66.8% of Genesis Energy shares are owned by institutional investors. Comparatively, 0.0% of Inpex shares are owned by institutional investors. 0.7% of Genesis Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Genesis Energy and Inpex, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genesis Energy	0	1	2	0	2.67
Inpex	0	3	0	0	2.00

Genesis Energy currently has a consensus price target of $17.50, suggesting a potential upside of 38.11%. Given Genesis Energy’s stronger consensus rating and higher probable upside, research analysts clearly believe Genesis Energy is more favorable than Inpex.

Dividends

Genesis Energy pays an annual dividend of $0.80 per share and has a dividend yield of 6.3%. Inpex pays an annual dividend of $0.42 per share and has a dividend yield of 1.9%. Genesis Energy pays out 421.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Inpex pays out 17.6% of its earnings in the form of a dividend. Genesis Energy has increased its dividend for 1 consecutive years. Genesis Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Genesis Energy has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, Inpex has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500.

Earnings and Valuation

This table compares Genesis Energy and Inpex”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genesis Energy	$1.63 billion	0.95	-$440.40 million	$0.19	66.69
Inpex	$13.45 billion	2.00	$2.52 billion	$2.38	9.54

Inpex has higher revenue and earnings than Genesis Energy. Inpex is trading at a lower price-to-earnings ratio than Genesis Energy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Genesis Energy and Inpex’s 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%
Inpex	21.93%	8.53%	5.51%

Summary

Genesis Energy beats Inpex on 10 of the 17 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 Inpex

INPEX Corporation is a Japanese energy company focused on the exploration, development, production and sale of oil and natural gas. Its activities span the energy project lifecycle, from resource exploration and field development to the production and marketing of energy products. The company operates in Japan and internationally, with projects and business interests in regions including Australia, Indonesia and the Middle East. A major project is the Ichthys LNG project in Australia, which produces liquefied natural gas, condensate and liquefied petroleum gas for domestic and overseas markets.