Critical Review: Centrus Energy (LEU) versus Its Competitors

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

Insider and Institutional Ownership

50.0% of Centrus Energy shares are owned by institutional investors. Comparatively, 30.7% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by institutional investors. 0.7% of Centrus Energy shares are owned by insiders. Comparatively, 15.5% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Centrus Energy has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Centrus Energy’s competitors have a beta of -3.75, suggesting that their average share price is 475% less volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Centrus Energy $454.50 million $77.80 million 30.57
Centrus Energy Competitors $11.75 billion $5.51 billion -1.06

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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Centrus Energy and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Centrus Energy 0 9 9 1 2.58
Centrus Energy Competitors 5982 26995 40851 2423 2.52

Centrus Energy presently has a consensus target price of $191.88, suggesting a potential upside of 83.52%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 28.94%. Given Centrus Energy’s stronger consensus rating and higher possible upside, equities analysts plainly 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 -455.90% 20.13% 6.34%

Summary

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

About Centrus Energy

(Get Free Report)

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.

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