Centrus Energy (NYSE:LEU) versus Zentek (NASDAQ:ZTEK) Head-To-Head Review

Zentek (NASDAQ:ZTEKGet Rating) and Centrus Energy (NYSE:LEUGet Rating) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Zentek and Centrus Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zentek 0 0 1 0 3.00
Centrus Energy 0 0 0 0 N/A

Zentek currently has a consensus price target of $3.50, suggesting a potential upside of 48.31%. Given Zentek’s higher probable upside, equities research analysts plainly believe Zentek is more favorable than Centrus Energy.

Risk & Volatility

Zentek has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Centrus Energy has a beta of 2.26, suggesting that its share price is 126% more volatile than the S&P 500.

Profitability

This table compares Zentek and Centrus Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zentek N/A -65.22% -61.52%
Centrus Energy 60.97% -103.39% 38.23%

Insider and Institutional Ownership

49.0% of Centrus Energy shares are held by institutional investors. 14.0% of Centrus Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Zentek and Centrus Energy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zentek $280,000.00 837.46 -$30.87 million ($0.11) -21.45
Centrus Energy $298.30 million 1.44 $175.00 million $9.68 3.06

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

Summary

Centrus Energy beats Zentek on 9 of the 13 factors compared between the two stocks.

About Zentek

(Get Rating)

Zentek Ltd. engages in the research and development of graphene and related nanomaterials in Canada. It owns 100% interest in the Albany Graphite project located in Northern Ontario, Canada. The company develops graphene-based antimicrobial coating under the ZenGUARD brand, surgical masks, HVAC filters, personal protective equipment, rapid detection point of care diagnostics tests, and pharmaceutical products based on graphene-based compound. In addition, it develops synthesize graphene, graphene oxide, and graphene quantum dots for applications of graphene. The company was formerly known as ZEN Graphene Solutions Ltd. and changed its name to Zentek Ltd. in October 2021. Zentek Ltd. was incorporated in 2008 and is headquartered in Thunder Bay, Canada.

About Centrus Energy

(Get Rating)

Centrus Energy Corp. supplies nuclear fuel and services for the nuclear power industry in the United States, Japan, Belgium, and internationally. The company operates through two segments, Low-Enriched Uranium (LEU) and Technical Solutions. The LEU segment sells separative work units (SWU) component of LEU; SWU and natural uranium components of LEU; and natural uranium for utilities that operate nuclear power plants. The Technical Solutions segment offers technical, manufacturing, engineering, procurement, construction, and operations services to public and private sector customers, including the American Centrifuge engineering and testing activities. 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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