Financial Analysis: Centrus Energy (NYSE:LEU) vs. Global Partners (NYSE:GLP)

Global Partners (NYSE:GLP) and Centrus Energy (NYSE:LEU) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.

Earnings & Valuation

This table compares Global Partners and Centrus Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Partners	$21.46 billion	0.08	$79.22 million	$4.91	10.87
Centrus Energy	$473.90 million	7.69	$77.80 million	$2.20	83.05

Global Partners has higher revenue and earnings than Centrus Energy. Global Partners 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 Recommendations

This is a breakdown of recent ratings and target prices for Global Partners and Centrus Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Partners	0	2	1	0	2.33
Centrus Energy	0	9	6	1	2.50

Global Partners currently has a consensus target price of $46.00, indicating a potential downside of 13.78%. Centrus Energy has a consensus target price of $236.79, indicating a potential upside of 29.59%. Given Centrus Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Centrus Energy is more favorable than Global Partners.

Profitability

This table compares Global Partners and Centrus Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Partners	0.91%	30.87%	4.92%
Centrus Energy	10.23%	7.06%	2.01%

Insider & Institutional Ownership

38.1% of Global Partners shares are owned by institutional investors. Comparatively, 50.0% of Centrus Energy shares are owned by institutional investors. 41.5% of Global Partners shares are owned by insiders. Comparatively, 0.7% of Centrus Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Global Partners has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Centrus Energy has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Summary

Centrus Energy beats Global Partners on 9 of the 15 factors compared between the two stocks.

About Global Partners

Global Partners LP engages in the purchasing, selling, gathering, blending, storing, and logistics of transporting gasoline and gasoline blendstocks, distillates, residual oil, renewable fuels, crude oil, and propane to wholesalers, retailers, and commercial customers. The company operates through three segments: Wholesale, Gasoline Distribution and Station Operations, and Commercial. The Wholesale segment sells home heating oil, branded and unbranded gasoline and gasoline blendstocks, diesel, kerosene, and residual oil to home heating oil and propane retailers and wholesale distributors. This segment also transports the products by railcars, barges, trucks and/or pipelines. Its Gasoline Distribution and Station Operations segment sells branded and unbranded gasoline to gasoline station operators and sub-jobbers; operates gasoline stations and convenience stores; and provides car wash, lottery, and ATM services, as well as leases gasoline stations. The Commercial segment sells and delivers unbranded gasoline, home heating oil, diesel, kerosene, residual oil, and bunker fuel to customers in the public sector, as well as to commercial and industrial end-users; and sells custom blended fuels. The company is also involved in the transportation of petroleum products and renewable fuels through rail from the mid-continent region of the United States and Canada. Global Partners LP was founded in 2005 and is based in Waltham, Massachusetts.

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.