Head to Head Analysis: NACCO Industries (NYSE:NC) versus Centrus Energy (NYSE:LEU)

NACCO Industries (NYSE:NC – Get Free Report) and Centrus Energy (NYSE:LEU – Get Free Report) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Analyst Ratings

This is a breakdown of recent ratings and price targets for NACCO Industries and Centrus Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NACCO Industries 0 1 0 0 2.00
Centrus Energy 0 9 9 1 2.58

Centrus Energy has a consensus price target of $188.12, suggesting a potential upside of 67.59%. Given Centrus Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Centrus Energy is more favorable than NACCO Industries.

Risk and Volatility

NACCO Industries has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Centrus Energy has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.

Earnings & Valuation

This table compares NACCO Industries and Centrus Energy”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NACCO Industries $277.20 million 0.96 $17.57 million $1.96 18.01
Centrus Energy $448.70 million 4.99 $77.80 million $3.42 32.82

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

Profitability

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

Net Margins Return on Equity Return on Assets
NACCO Industries 5.29% 3.42% 2.19%
Centrus Energy 16.77% 8.73% 2.96%

Insider & Institutional Ownership

49.1% of NACCO Industries shares are held by institutional investors. Comparatively, 50.0% of Centrus Energy shares are held by institutional investors. 44.8% of NACCO Industries shares are held by company insiders. Comparatively, 0.7% of Centrus Energy 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

Centrus Energy beats NACCO Industries on 14 of the 15 factors compared between the two stocks.

About NACCO Industries

(Get Free Report)

NACCO Industries, Inc. is a natural resources company that provides mining and natural resource development services primarily in the United States. Through its subsidiaries, the company operates in coal mining, aggregates and minerals management, serving customers in the power generation, industrial and construction sectors. Its principal business is conducted through The North American Coal Corporation, which develops and operates surface coal mines under long-term contracts for electric utilities and industrial customers.

About Centrus Energy

(Get Free Report)

Centrus Energy Corp. is a U.S.-based supplier of nuclear fuel and related services. Its main business includes providing low-enriched uranium (LEU), a fuel used by many commercial nuclear power plants, and uranium enrichment services to utilities and other customers. The company also develops and operates centrifuge technology and provides engineering, manufacturing, and technical services to government and commercial customers. In recent years, Centrus has worked under U.S. Department of Energy contracts to demonstrate production of high-assay low-enriched uranium (HALEU), an advanced fuel intended for certain next-generation reactors.

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