Financial Survey: Inergy (CEQP) versus XO Group (XOXO)

Inergy (NYSE: CEQP) and XO Group (NYSE:XOXO) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Institutional and Insider Ownership

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64.0% of Inergy shares are owned by institutional investors. Comparatively, 85.4% of XO Group shares are owned by institutional investors. 36.2% of Inergy shares are owned by company insiders. Comparatively, 7.0% of XO Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Inergy and XO Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inergy 0 1 4 0 2.80
XO Group 0 2 1 0 2.33

Inergy currently has a consensus target price of $32.25, indicating a potential upside of 14.97%. XO Group has a consensus target price of $21.50, indicating a potential downside of 0.74%. Given Inergy’s stronger consensus rating and higher probable upside, research analysts clearly believe Inergy is more favorable than XO Group.

Risk & Volatility

Inergy has a beta of 2.35, indicating that its share price is 135% more volatile than the S&P 500. Comparatively, XO Group has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.

Earnings and Valuation

This table compares Inergy and XO Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Inergy $3.88 billion 0.51 -$191.90 million ($1.16) -24.05
XO Group $160.56 million 3.47 $5.53 million $0.39 55.54

XO Group has lower revenue, but higher earnings than Inergy. Inergy is trading at a lower price-to-earnings ratio than XO Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Inergy and XO Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Inergy -6.17% -4.04% -1.62%
XO Group 3.45% 5.76% 4.82%

Dividends

Inergy pays an annual dividend of $2.40 per share and has a dividend yield of 8.6%. XO Group does not pay a dividend. Inergy pays out -206.9% of its earnings in the form of a dividend.

About Inergy

Crestwood Equity Partners LP owns and operates energy midstream infrastructure and engages in the natural gas liquids marketing, supply and logistics business. It operates through three segments: Gathering and Processing; Storage and Transportation; and Marketing, Supply and Logistics. The Gathering and Processing segment provides gathering and transportation services and processing, treating and compression services to producers in unconventional shale plays and tight-gas plays in North Dakota, West Virginia, Texas, New Mexico, Wyoming, Arkansas, and Louisiana. The Storage and Transportation segment includes COLT Hub, which is crude-by-rail terminal serving Bakken crude oil production. The Marketing, Supply and Logistics segment includes West Coast operations, our supply and logistics operations, our storage and terminals operations, our crude oil and produced water trucking operations, and U.S. Salt, LLC. The company was founded on March 7, 2001 and is headquartered in Houston, TX.

About XO Group

XO Group Inc. provides multiplatform media and marketplace services to the wedding, pregnancy and parenting, and local entertainment markets primarily in the United States. It operates a network of Websites under various brands, including The Knot, which offers wedding resources and marketplaces through wedding Website and mobile apps, national and local wedding magazines, and nationally published books; and The Bump, a pregnancy and parenting brand that provides personalized information, content, and tools for navigating the journey from fertility to pregnancy and parenting through the toddler years. The company's network of Websites also comprise GigMasters, an event marketplace for finding and booking the entertainment and vendors for birthday parties, weddings, anniversaries, corporate events, and others. It also offers local online advertising programs, such as online listings, digital advertisements, and direct email marketing; and national online advertising programs consisting of display advertisements, custom and brand-integrated content, direct emails, and placement in its online search tools. In addition, the company provides transaction offerings that include a registry service, which enables users to create, manage, and share various retail store registries from a single source; and retailer and local vendor offerings, such as invitations, stationery, reception decor, and personalized gifts. Further, it publishes The Knot national and regional magazines. The company was formerly known as The Knot, Inc. and changed its name to XO Group Inc. in June 2011. XO Group Inc. was founded in 1996 and is headquartered in New York, New York.

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