Analyzing Centrus Energy (LEU) and Its Peers

Centrus Energy (NYSE:LEU) is one of 1,051 public companies in the “Oil, Gas & Consumable Fuels” industry, but how does it compare to its competitors? We will compare Centrus Energy to similar businesses based on the strength of its dividends, earnings, institutional ownership, analyst recommendations, risk, profitability and valuation.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Centrus Energy and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centrus Energy	0	9	9	1	2.58
Centrus Energy Competitors	5982	26995	40851	2423	2.52

Centrus Energy presently has a consensus target price of $191.88, suggesting a potential upside of 83.52%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 28.94%. Given Centrus Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Centrus Energy is more favorable than its competitors.

Valuation & Earnings

This table compares Centrus Energy and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Centrus Energy	$454.50 million	$77.80 million	30.57
Centrus Energy Competitors	$11.75 billion	$5.51 billion	-1.06

Centrus Energy’s competitors have higher revenue and earnings than Centrus Energy. Centrus Energy is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Centrus Energy and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Centrus Energy	16.77%	8.73%	2.96%
Centrus Energy Competitors	-455.90%	20.13%	6.34%

Volatility & Risk

Centrus Energy has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, Centrus Energy’s competitors have a beta of -3.75, indicating that their average stock price is 475% less volatile than the S&P 500.

Insider & Institutional Ownership

50.0% of Centrus Energy shares are held by institutional investors. Comparatively, 30.7% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 0.7% of Centrus Energy shares are held by company insiders. Comparatively, 15.5% of shares of all “Oil, Gas & Consumable Fuels” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Centrus Energy beats its competitors on 7 of the 13 factors compared.

Centrus Energy Company Profile

Centrus Energy Corp. supplies nuclear fuel components and services for the nuclear power industry in the United States, Belgium, Japan, and internationally. The company operates through two segments, Low-Enriched Uranium (LEU) and Technical Solutions. The LEU segment sells separative work units (SWU) components of LEU; natural uranium hexafluoride, uranium concentrates, and uranium conversion; and enriched uranium products to utilities that operate nuclear power plants. The Technical Solutions segment offers technical, manufacturing, engineering, and operations services to public and private sector customers. 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.