Financial Analysis: Centrus Energy (LEU) and Its Rivals

Centrus Energy (NYSE:LEU) is one of 1,051 publicly-traded companies in the “Oil, Gas & Consumable Fuels” industry, but how does it compare to its competitors? We will compare Centrus Energy to similar companies based on the strength of its profitability, dividends, risk, earnings, valuation, institutional ownership and analyst recommendations.

Valuation and Earnings

This table compares Centrus Energy and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Centrus Energy	$454.50 million	$77.80 million	32.82
Centrus Energy Competitors	$11.32 billion	$5.51 billion	-1.25

Centrus Energy’s competitors have higher revenue and earnings than Centrus Energy. Centrus Energy is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

50.0% of Centrus Energy shares are held by institutional investors. Comparatively, 30.8% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 0.7% of Centrus Energy shares are held by insiders. Comparatively, 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Centrus Energy has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, Centrus Energy’s competitors have a beta of -3.76, indicating that their average stock price is 476% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Centrus Energy and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centrus Energy	0	9	9	1	2.58
Centrus Energy Competitors	5994	27032	40912	2431	2.52

Centrus Energy presently has a consensus price target of $188.12, suggesting a potential upside of 67.59%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 27.20%. Given Centrus Energy’s stronger consensus rating and higher possible upside, research analysts clearly believe Centrus Energy is more favorable than its competitors.

Profitability

This table compares Centrus Energy and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Centrus Energy	16.77%	8.73%	2.96%
Centrus Energy Competitors	-455.84%	19.30%	6.64%

Summary

Centrus Energy beats its competitors on 7 of the 13 factors compared.

About Centrus Energy

Centrus Energy Corp. is a U.S.-based supplier of nuclear fuel and related services. Its main business includes providing low-enriched uranium (LEU), a fuel used by many commercial nuclear power plants, and uranium enrichment services to utilities and other customers. The company also develops and operates centrifuge technology and provides engineering, manufacturing, and technical services to government and commercial customers. In recent years, Centrus has worked under U.S. Department of Energy contracts to demonstrate production of high-assay low-enriched uranium (HALEU), an advanced fuel intended for certain next-generation reactors.