Financial Contrast: Centrus Energy (NYSE:LEU) and Energy Fuels (NYSE:UUUU)

Centrus Energy (NYSE:LEU) and Energy Fuels (NYSE:UUUU) are both small-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Volatility and Risk

Centrus Energy has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, Energy Fuels has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500.

Institutional and Insider Ownership

50.0% of Centrus Energy shares are owned by institutional investors. Comparatively, 48.2% of Energy Fuels shares are owned by institutional investors. 1.0% of Centrus Energy shares are owned by insiders. Comparatively, 1.9% of Energy Fuels shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices 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 presently has a consensus target price of $92.00, suggesting a potential upside of 37.72%. Energy Fuels has a consensus target price of $8.50, suggesting a potential upside of 60.38%. Given Energy Fuels’ stronger consensus rating and higher probable upside, analysts clearly believe Energy Fuels is more favorable than Centrus Energy.

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%

Earnings and Valuation

This table compares Centrus Energy and Energy Fuels”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Centrus Energy	$394.00 million	2.78	$84.40 million	$4.79	13.95
Energy Fuels	$38.66 million	26.96	$99.86 million	($0.22)	-24.09

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.

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.