Critical Comparison: Cameco (NYSE:CCJ) & First Colombia Gold (OTCMKTS:FCGD)

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

Risk & Volatility

First Colombia Gold has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500. Comparatively, Cameco has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for First Colombia Gold and Cameco, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Colombia Gold	0	0	0	0	0.00
Cameco	0	2	13	1	2.94

Cameco has a consensus price target of $121.68, indicating a potential upside of 15.10%. Given Cameco’s stronger consensus rating and higher probable upside, analysts clearly believe Cameco is more favorable than First Colombia Gold.

Profitability

This table compares First Colombia Gold and Cameco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Colombia Gold	N/A	N/A	N/A
Cameco	15.24%	8.58%	5.86%

Valuation & Earnings

This table compares First Colombia Gold and Cameco”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Colombia Gold	N/A	N/A	N/A	N/A	N/A
Cameco	$2.29 billion	20.11	$125.42 million	$0.86	122.92

Cameco has higher revenue and earnings than First Colombia Gold.

Institutional & Insider Ownership

70.2% of Cameco shares are held by institutional investors. 0.0% of First Colombia Gold shares are held by company insiders. Comparatively, 1.0% of Cameco shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Cameco beats First Colombia Gold on 11 of the 11 factors compared between the two stocks.

About First Colombia Gold

First Colombia Gold Corp. engages in the exploration and production of oil and gas properties. The company operates through Energy and Mining divisions. It holds interests in 96 oil wells with a gross acreage of 4,302 acres in the counties of Cumberland, Monroe, Overton, and Clinton. The company is also involved in the precious minerals exploration business. It owns 2 unpatented mining claims in the Skip Silver prospect covering an area of approximately 40 acres in central Montana. The company was formerly known as Amazon Goldsands Ltd. and changed its name to First Colombia Gold Corp. in November 2010. First Colombia Gold Corp. was founded in 1997 and is based in Nashville, Tennessee.

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.