Critical Analysis: Redeia Corporacion (OTCMKTS:RDEIY) and Uranium Royalty (NASDAQ:UROY)

Redeia Corporacion (OTCMKTS:RDEIY) and Uranium Royalty (NASDAQ:UROY) are both small-cap energy companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

24.2% of Uranium Royalty shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Redeia Corporacion and Uranium Royalty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Redeia Corporacion	N/A	N/A	N/A
Uranium Royalty	N/A	-1.97%	-1.93%

Earnings and Valuation

This table compares Redeia Corporacion and Uranium Royalty”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Redeia Corporacion	$1.73 billion	0.60	$398.69 million	N/A	N/A
Uranium Royalty	$11.19 million	31.77	-$4.06 million	($0.03)	-88.67

Redeia Corporacion has higher revenue and earnings than Uranium Royalty.

Risk and Volatility

Redeia Corporacion has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Uranium Royalty has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Redeia Corporacion and Uranium Royalty, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Redeia Corporacion	1	2	0	1	2.25
Uranium Royalty	0	1	2	1	3.00

Uranium Royalty has a consensus target price of $4.00, suggesting a potential upside of 50.38%. Given Uranium Royalty’s stronger consensus rating and higher probable upside, analysts plainly believe Uranium Royalty is more favorable than Redeia Corporacion.

Summary

Uranium Royalty beats Redeia Corporacion on 6 of the 10 factors compared between the two stocks.

About Redeia Corporacion

Redeia Corporación, S.A. engages in the electricity transmission, and system operation and management of the transmission network for the electricity system in Spain and internationally. The company operates through three segments: Management and Operation of National Electricity Infrastructure; Management and Operation of International Electricity Infrastructure; and Telecommunications (Satellites and Fibre Optic). Its transmission network comprises approximately 45,141 kilometres; and has 94,981 MVA of transformation capacity. The company also provides advisory, engineering, and construction services; and telecommunications, financing, reinsurance, line and substation maintenance, technical consultancy, and satellite telecommunications services. In addition, it manages and constructs energy storage facilities and the water cycle; acquires, holds, manages, and administers equity securities; operates satellite communications system and provides space segment services for the geostationary orbital slots; and sells and leases satellites and spatial capacity. The company was formerly known as Red Eléctrica Corporación, S.A. and changed its name to Redeia Corporación, S.A. in June 2023. Redeia Corporación, S.A. was incorporated in 1985 and is based in Alcobendas, Spain.

About Uranium Royalty

Uranium Royalty Corp. operates as a pure-play uranium royalty company. It acquires, accumulates, and manages a portfolio of geographically diversified uranium interests. The company has royalty interests in the McArthur River, Cigar Lake / Waterbury Lake, Roughrider, Russell Lake, Russell Lake south, and Dawn Lake projects in Saskatchewan, Canada; Anderson and San Rafael projects in Arizona; Lance and Reno Creek projects in Wyoming; Church Rock and Roca Honda projects in New Mexico; Dewey-Burdock project in South Dakota; Slick Rock project in Colorado; Langer Heinrich project in Namibia; and Michelin project in Newfoundland and Labrador, Canada; Energy Queen and Whirlwind project in Utah; and Workman Creek projects in Arizona. Uranium Royalty Corp. was incorporated in 2017 and is headquartered in Vancouver, Canada.