Centrus Energy (NYSE:LEU – Get Free Report) and Energy Fuels (NYSE:UUUU – Get Free Report) are both small-cap basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.
Risk and Volatility
Centrus Energy has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Energy Fuels has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500.
Profitability
This table compares Centrus Energy and Energy Fuels’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Centrus Energy | 19.24% | 138.38% | 10.81% |
Energy Fuels | -90.40% | -9.16% | -8.67% |
Valuation & Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Centrus Energy | $320.20 million | 4.17 | $84.40 million | $4.79 | 17.00 |
Energy Fuels | $37.93 million | 35.87 | $99.86 million | ($0.22) | -31.45 |
Energy Fuels has lower revenue, but higher earnings than Centrus Energy. Energy Fuels is trading at a lower price-to-earnings ratio than Centrus Energy, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for Centrus Energy and Energy Fuels, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Centrus Energy | 0 | 2 | 1 | 0 | 2.33 |
Energy Fuels | 0 | 2 | 2 | 0 | 2.50 |
Centrus Energy currently has a consensus target price of $92.00, suggesting a potential upside of 12.95%. Energy Fuels has a consensus target price of $8.50, suggesting a potential upside of 22.83%. Given Energy Fuels’ stronger consensus rating and higher probable upside, analysts plainly believe Energy Fuels is more favorable than Centrus Energy.
Institutional & Insider Ownership
50.0% of Centrus Energy shares are held by institutional investors. Comparatively, 48.2% of Energy Fuels shares are held by institutional investors. 1.0% of Centrus Energy shares are held by insiders. Comparatively, 1.9% of Energy Fuels shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
About Centrus Energy
Centrus Energy Corp. supplies nuclear fuel components and services for the nuclear power industry in the United States, Belgium, Japan, and internationally. The company operates through two segments, Low-Enriched Uranium (LEU) and Technical Solutions. The LEU segment sells separative work units (SWU) components of LEU; natural uranium hexafluoride, uranium concentrates, and uranium conversion; and enriched uranium products to utilities that operate nuclear power plants. The Technical Solutions segment offers technical, manufacturing, engineering, and operations services to public and private sector customers. The company was formerly known as USEC Inc. and changed its name to Centrus Energy Corp. in September 2014. Centrus Energy Corp. was incorporated in 1998 and is headquartered in Bethesda, Maryland.
About Energy Fuels
Energy Fuels Inc., together with its subsidiaries, engages in the extraction, recovery, recycling, exploration, permitting, evaluation, and sale of uranium mineral properties in the United States. The company produces and sells vanadium pentoxide, rare earth elements, and heavy mineral sands, such as ilmenite, rutile, zircon, and monazite. The company was formerly known as Volcanic Metals Exploration Inc. and changed its name to Energy Fuels Inc. in May 2006. Energy Fuels Inc. was incorporated in 1987 and is headquartered in Lakewood, Colorado.
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