Centrus Energy (NYSE:LEU – Get Free Report) and Diamondback Energy (NASDAQ:FANG – Get Free Report) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.
Volatility and Risk
Centrus Energy has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500. Comparatively, Diamondback Energy has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500.
Institutional & Insider Ownership
50.0% of Centrus Energy shares are owned by institutional investors. Comparatively, 90.0% of Diamondback Energy shares are owned by institutional investors. 0.7% of Centrus Energy shares are owned by insiders. Comparatively, 0.6% of Diamondback 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.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Centrus Energy | $448.70 million | 5.10 | $77.80 million | $2.20 | 52.18 |
| Diamondback Energy | $15.03 billion | 3.80 | $1.66 billion | $5.13 | 39.76 |
Diamondback Energy has higher revenue and earnings than Centrus Energy. Diamondback Energy is trading at a lower price-to-earnings ratio than Centrus Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Centrus Energy and Diamondback Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Centrus Energy | 10.23% | 7.06% | 2.01% |
| Diamondback Energy | 8.58% | 10.10% | 6.16% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Centrus Energy and Diamondback Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Centrus Energy | 0 | 8 | 7 | 2 | 2.65 |
| Diamondback Energy | 0 | 5 | 24 | 2 | 2.90 |
Centrus Energy presently has a consensus price target of $231.13, suggesting a potential upside of 101.33%. Diamondback Energy has a consensus price target of $226.71, suggesting a potential upside of 11.16%. Given Centrus Energy’s higher possible upside, analysts plainly believe Centrus Energy is more favorable than Diamondback Energy.
Summary
Diamondback Energy beats Centrus Energy on 8 of the 14 factors compared between 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 Diamondback Energy
Diamondback Energy, Inc., an independent oil and natural gas company, acquires, develops, explores, and exploits unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. It focuses on the development of the Spraberry and Wolfcamp formations of the Midland basin; and the Wolfcamp and Bone Spring formations of the Delaware basin, which are part of the Permian Basin in West Texas and New Mexico. The company also owns and operates midstream infrastructure assets, in the Midland and Delaware Basins of the Permian Basin. Diamondback Energy, Inc. was founded in 2007 and is headquartered in Midland, Texas.
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