Cameco (NYSE:CCJ) versus Orbite Aluminae (OTCMKTS:EORBF) Critical Survey

Orbite Aluminae (OTCMKTS:EORBF) and Cameco (NYSE:CCJ) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Orbite Aluminae and Cameco, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orbite Aluminae	0	0	0	0	0.00
Cameco	0	0	13	2	3.13

Cameco has a consensus target price of $89.55, indicating a potential upside of 14.69%. Given Cameco’s stronger consensus rating and higher possible upside, analysts clearly believe Cameco is more favorable than Orbite Aluminae.

Profitability

This table compares Orbite Aluminae and Cameco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orbite Aluminae	N/A	N/A	N/A
Cameco	14.97%	8.21%	5.55%

Earnings & Valuation

This table compares Orbite Aluminae and Cameco”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orbite Aluminae	N/A	N/A	N/A	N/A	N/A
Cameco	$2.29 billion	14.85	$125.42 million	$0.87	89.74

Cameco has higher revenue and earnings than Orbite Aluminae.

Volatility & Risk

Orbite Aluminae has a beta of -8.9, indicating that its stock price is 990% less volatile than the S&P 500. Comparatively, Cameco has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Insider and Institutional Ownership

70.2% of Cameco shares are held by institutional investors. 1.0% of Cameco shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Cameco beats Orbite Aluminae on 11 of the 11 factors compared between the two stocks.

About Orbite Aluminae

Orbite Technologies Inc. operates as a clean technology based mineral-processing and resource development company in Canada. It produces high-purity alumina, silica, hematite, magnesium oxide, titanium oxide, smelter-grade alumina, and rare earth and rare metal oxides from various feedstocks, including red mud, fly-ash, aluminous clays, mine tailings, bauxite, and kaolin clay, as well as serpentine residues from chrysotile processing sites. The company owns 100% interest in 99 mineral claims totaling approximately 55 square kilometers, as well as 1 mining lease of 98.5 hectares at a site near Grande-Vallée, Québec. It also owns 100% interest in 138 mineral claims covering approximately 78.4 square kilometers at sites near Rimouski and Cap-Chat, Québec. The company was formerly known as Orbite Aluminae Inc. and changed its name to Orbite Technologies Inc. in June 2015. Orbite Technologies Inc. was incorporated in 1983 and is headquartered in Laval, Canada.

About Cameco

Cameco Corporation provides uranium for the generation of electricity. It operates through Uranium, Fuel Services, Westinghouse segments. The Uranium segment is involved in the exploration for, mining, and milling, purchase, and sale of uranium concentrate. The Fuel Services segment engages in the refining, conversion, and fabrication of uranium concentrate, as well as the purchase and sale of conversion services. This segment also produces CANDU reactor fuel bundles and other reactor components. The company offers nuclear fuel processing services. The Westinghouse segment engages in the manufacture of nuclear reactor technology original equipment. This segment provides products and services to commercial utilities and government agencies; and outage and maintenance services, engineering support, instrumentation and controls equipment, plant modification, and components and parts to nuclear reactors. It sells its uranium and fuel services to nuclear utilities in the Americas, Europe, and Asia. Cameco Corporation was incorporated in 1987 and is headquartered in Saskatoon, Canada.