Energy Fuels (NYSE:UUUU – Get Free Report) and 5E Advanced Materials (NASDAQ:FEAM – Get Free Report) are both small-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
Volatility and Risk
Energy Fuels has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500. Comparatively, 5E Advanced Materials has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500.
Insider & Institutional Ownership
48.2% of Energy Fuels shares are held by institutional investors. 1.9% of Energy Fuels shares are held by company insiders. Comparatively, 9.1% of 5E Advanced Materials shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Energy Fuels | 0 | 2 | 2 | 0 | 2.50 |
5E Advanced Materials | 0 | 1 | 2 | 0 | 2.67 |
Energy Fuels presently has a consensus target price of $8.50, indicating a potential upside of 28.01%. 5E Advanced Materials has a consensus target price of $4.58, indicating a potential upside of 875.18%. Given 5E Advanced Materials’ stronger consensus rating and higher possible upside, analysts plainly believe 5E Advanced Materials is more favorable than Energy Fuels.
Valuation & Earnings
This table compares Energy Fuels and 5E Advanced Materials”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Energy Fuels | $38.66 million | 33.36 | $99.86 million | ($0.22) | -30.18 |
5E Advanced Materials | N/A | N/A | -$62.01 million | ($1.12) | -0.42 |
Energy Fuels has higher revenue and earnings than 5E Advanced Materials. Energy Fuels is trading at a lower price-to-earnings ratio than 5E Advanced Materials, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Energy Fuels and 5E Advanced Materials’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Energy Fuels | -90.40% | -9.16% | -8.67% |
5E Advanced Materials | N/A | -187.81% | -48.85% |
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.
About 5E Advanced Materials
5E Advanced Materials, Inc. engages in the exploration and development of mineral properties in Australia and the United States. The company primarily explores for borates and lithium deposits. It holds 100% interest in the Fort Cady project located in the Mojave Desert region in eastern San Bernardino County, California. The company was formerly known as American Pacific Borates Limited. The company was incorporated in 2016 and is based in Hesperia, California.
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