Comparing Energy Fuels (NYSE:UUUU) & 5E Advanced Materials (NASDAQ:FEAM)

5E Advanced Materials (NASDAQ:FEAM) and Energy Fuels (NYSE:UUUU) are both small-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Institutional & Insider Ownership

48.2% of Energy Fuels shares are held by institutional investors. 9.1% of 5E Advanced Materials shares are held by company insiders. Comparatively, 1.9% of Energy Fuels shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for 5E Advanced Materials and Energy Fuels, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
5E Advanced Materials	0	1	2	0	2.67
Energy Fuels	0	2	2	0	2.50

5E Advanced Materials currently has a consensus price target of $4.58, suggesting a potential upside of 991.27%. Energy Fuels has a consensus price target of $8.50, suggesting a potential upside of 26.11%. Given 5E Advanced Materials’ stronger consensus rating and higher probable upside, equities analysts plainly believe 5E Advanced Materials is more favorable than Energy Fuels.

Profitability

This table compares 5E Advanced Materials and Energy Fuels’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
5E Advanced Materials	N/A	-243.25%	-49.58%
Energy Fuels	-90.40%	-9.16%	-8.67%

Valuation and Earnings

This table compares 5E Advanced Materials and Energy Fuels”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
5E Advanced Materials	N/A	N/A	-$62.01 million	($1.12)	-0.37
Energy Fuels	$38.66 million	34.28	$99.86 million	($0.22)	-30.64

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.

Volatility and Risk

5E Advanced Materials has a beta of 1.87, indicating that its share price is 87% more volatile than the S&P 500. Comparatively, Energy Fuels has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500.

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.

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.