Financial Analysis: Inplay Oil Cp (OTCMKTS:IPOOF) vs. Shell (NYSE:SHEL)

Shell (NYSE:SHEL) and Inplay Oil Cp (OTCMKTS:IPOOF) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Volatility & Risk

Shell has a beta of 0.05, indicating that its stock price is 95% less volatile than the S&P 500. Comparatively, Inplay Oil Cp has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.

Valuation and Earnings

This table compares Shell and Inplay Oil Cp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shell	$273.73 billion	0.97	$17.84 billion	$9.06	10.43
Inplay Oil Cp	$208.55 million	1.69	-$5.61 million	($0.40)	-31.69

Shell has higher revenue and earnings than Inplay Oil Cp. Inplay Oil Cp is trading at a lower price-to-earnings ratio than Shell, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

28.6% of Shell shares are held by institutional investors. 1.0% of Shell shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Shell and Inplay Oil Cp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shell	0	11	7	0	2.39
Inplay Oil Cp	0	0	0	1	4.00

Shell currently has a consensus price target of $107.46, suggesting a potential upside of 13.67%. Given Shell’s higher probable upside, analysts plainly believe Shell is more favorable than Inplay Oil Cp.

Dividends

Shell pays an annual dividend of $3.12 per share and has a dividend yield of 3.3%. Inplay Oil Cp pays an annual dividend of $0.78 per share and has a dividend yield of 6.2%. Shell pays out 34.4% of its earnings in the form of a dividend. Inplay Oil Cp pays out -195.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Inplay Oil Cp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Shell and Inplay Oil Cp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shell	8.55%	14.34%	6.74%
Inplay Oil Cp	-3.70%	4.89%	1.54%

Summary

Shell beats Inplay Oil Cp on 11 of the 17 factors compared between the two stocks.

About Shell

Shell plc operates as an energy and petrochemical company Europe, Asia, Oceania, Africa, the United States, and Rest of the Americas. The company operates through Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions segments. It explores for and extracts crude oil, natural gas, and natural gas liquids; markets and transports oil and gas; produces gas-to-liquids fuels and other products; and operates upstream and midstream infrastructure to deliver gas to market. The company also markets and trades natural gas, liquefied natural gas (LNG), crude oil, electricity, carbon-emission rights; and markets and sells LNG as a fuel for heavy-duty vehicles. In addition, it trades in and refines crude oil and other feed stocks, such as low-carbon fuels, lubricants, bitumen, sulphur, gasoline, diesel, aviation fuel, and marine fuel; produces and sells petrochemicals for industrial use; and manages oil sands activities. Further, the company produces base chemicals comprising ethylene, propylene, and aromatics, as well as intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide, and ethylene glycol. Additionally, it generates electricity through wind and solar resources; produces and sells hydrogen; and provides electric vehicle charging services. The company was formerly known as Royal Dutch Shell plc and changed its name to Shell plc in January 2022. Shell plc was founded in 1907 and is headquartered in London, the United Kingdom.

About Inplay Oil Cp

InPlay Oil Corp. engages in the acquisition, exploration, development, and production of petroleum and natural gas properties in Canada. The company produces and sells crude oil, natural gas, and natural gas liquids. It focuses on light oil asset base located in West Central, Alberta. InPlay Oil Corp. is headquartered in Calgary, Canada.