Centrus Energy (NYSE:LEU) and Granite Ridge Resources (NYSE:GRNT) Financial Comparison

Centrus Energy (NYSE:LEU) and Granite Ridge Resources (NYSE:GRNT) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Insider & Institutional Ownership

50.0% of Centrus Energy shares are held by institutional investors. Comparatively, 31.6% of Granite Ridge Resources shares are held by institutional investors. 0.7% of Centrus Energy shares are held by company insiders. Comparatively, 8.6% of Granite Ridge Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Centrus Energy and Granite Ridge Resources”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Centrus Energy	$448.70 million	7.70	$77.80 million	$2.20	78.69
Granite Ridge Resources	$450.31 million	1.49	$24.35 million	($0.21)	-24.14

Centrus Energy has higher earnings, but lower revenue than Granite Ridge Resources. Granite Ridge Resources 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 Centrus Energy and Granite Ridge Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Centrus Energy	10.23%	7.06%	2.01%
Granite Ridge Resources	-5.56%	4.67%	2.33%

Risk & Volatility

Centrus Energy has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Granite Ridge Resources has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Centrus Energy and Granite Ridge Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centrus Energy	0	9	6	1	2.50
Granite Ridge Resources	1	1	2	1	2.60

Centrus Energy presently has a consensus price target of $236.79, suggesting a potential upside of 36.78%. Granite Ridge Resources has a consensus price target of $10.00, suggesting a potential upside of 97.24%. Given Granite Ridge Resources’ stronger consensus rating and higher possible upside, analysts clearly believe Granite Ridge Resources is more favorable than Centrus Energy.

Summary

Centrus Energy beats Granite Ridge Resources on 9 of the 14 factors compared between the two stocks.

About Centrus Energy

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.

About Granite Ridge Resources

Granite Ridge Resources, Inc. operates as a non-operated oil and gas exploration and production company. It owns a portfolio of wells and acreage across the Permian and other unconventional basins in the United States. Granite Ridge Resources, Inc. is based in Dallas, Texas.