Head-To-Head Review: Largo (NYSE:LGO) and Energy Fuels (NYSE:UUUU)

Largo (NYSE:LGO) and Energy Fuels (NYSE:UUUU) are both small-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Profitability

This table compares Largo and Energy Fuels’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Largo	-35.10%	-22.61%	-14.29%
Energy Fuels	-90.40%	-9.16%	-8.67%

Institutional & Insider Ownership

64.1% of Largo shares are held by institutional investors. Comparatively, 48.2% of Energy Fuels shares are held by institutional investors. 0.3% of Largo shares are held by insiders. Comparatively, 1.9% of Energy Fuels shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Largo	$198.68 million	0.56	-$30.34 million	($0.80)	-2.18
Energy Fuels	$38.66 million	27.21	$99.86 million	($0.22)	-24.32

Energy Fuels has lower revenue, but higher earnings than Largo. Energy Fuels is trading at a lower price-to-earnings ratio than Largo, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for Largo and Energy Fuels, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Largo	0	0	1	0	3.00
Energy Fuels	0	2	2	0	2.50

Largo currently has a consensus target price of $4.20, suggesting a potential upside of 141.38%. Energy Fuels has a consensus target price of $8.50, suggesting a potential upside of 58.88%. Given Largo’s stronger consensus rating and higher probable upside, equities analysts clearly believe Largo is more favorable than Energy Fuels.

Risk and Volatility

Largo has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500. Comparatively, Energy Fuels has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500.

Summary

Energy Fuels beats Largo on 7 of the 13 factors compared between the two stocks.

About Largo

Largo Inc. engages in the development and sale of vanadium-based energy storage systems in Canada. The company operates through, Sales & Trading, Mine Properties, Corporate, Exploration and Evaluation Properties, and Largo Clean Energy and Largo Physical Vanadium Segments. Its products include VPURE+ vanadium flakes that are used in the production of master alloys and aerospace applications; VPURE vanadium flakes ferrovanadium and vanadium carbon nitride for the steel industry; and VPURE+ vanadium powder for catalyst applications. The company offers renewable energy storage solutions through Largo Clean Energy. Its products are sourced from vanadium deposits at the Maracás Menchen Mine in Brazil. The company was formerly known as Largo Resources Ltd. and changed its name to Largo Inc. in November 2021. The company was incorporated in 1988 and is headquartered in Toronto, Canada.

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.