Centrus Energy (NYSE:LEU – Get Rating) and U.S. Silica (NYSE:SLCA – Get Rating) are both small-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitability, institutional ownership and valuation.
Earnings and Valuation
This table compares Centrus Energy and U.S. Silica’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Centrus Energy||$298.30 million||1.82||$175.00 million||$8.03||4.68|
|U.S. Silica||$1.10 billion||0.93||-$33.76 million||$0.34||39.82|
Centrus Energy has higher earnings, but lower revenue than U.S. Silica. Centrus Energy is trading at a lower price-to-earnings ratio than U.S. Silica, indicating that it is currently the more affordable of the two stocks.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
U.S. Silica has a consensus target price of $18.75, indicating a potential upside of 38.48%. Given U.S. Silica’s higher possible upside, analysts plainly believe U.S. Silica is more favorable than Centrus Energy.
Volatility and Risk
Centrus Energy has a beta of 2.12, indicating that its stock price is 112% more volatile than the S&P 500. Comparatively, U.S. Silica has a beta of 2.77, indicating that its stock price is 177% more volatile than the S&P 500.
This table compares Centrus Energy and U.S. Silica’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
41.1% of Centrus Energy shares are owned by institutional investors. Comparatively, 81.3% of U.S. Silica shares are owned by institutional investors. 10.3% of Centrus Energy shares are owned by company insiders. Comparatively, 3.2% of U.S. Silica shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
U.S. Silica beats Centrus Energy on 7 of the 13 factors compared between the two stocks.
About Centrus Energy
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.
About U.S. Silica
U.S. Silica Holdings, Inc. produces and sells commercial silica in the United States. It operates through two segments, Oil & Gas Proppants and Industrial & Specialty Products. The company offers whole grain commercial silica products to be used as fracturing sand in connection with oil and natural gas recovery, as well as sells its whole grain silica products in various size distributions, grain shapes, and chemical purity levels for the manufacturing of glass products. It also provides various grades of whole-grain round silica to the foundry industry; ground silica and industrial minerals products for various products; and engineered performance materials made from diatomaceous earth (DE), clay, and perlite. In addition, the company offers transportation, equipment rental, and contract labor services. It serves oilfield services companies, and exploration and production companies that are engaged in hydraulic fracturing, building products, chemicals, fillers and extenders, filtration, glass, recreation, testing industries, and industrial and specialty products end markets. U.S. Silica Holdings, Inc. was incorporated in 2008 and is headquartered in Katy, Texas.
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