Cameco (NYSE:CCJ – Get Free Report) and Paladin Energy (OTCMKTS:PALAF – Get Free Report) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.
Profitability
This table compares Cameco and Paladin Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cameco | 18.38% | 11.05% | 7.65% |
| Paladin Energy | -7.08% | -1.90% | -1.44% |
Analyst Ratings
This is a summary of recent recommendations and price targets for Cameco and Paladin Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cameco | 0 | 5 | 11 | 0 | 2.69 |
| Paladin Energy | 0 | 1 | 0 | 0 | 2.00 |
Volatility & Risk
Cameco has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Paladin Energy has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.
Institutional & Insider Ownership
70.2% of Cameco shares are owned by institutional investors. Comparatively, 0.0% of Paladin Energy shares are owned by institutional investors. 1.0% of Cameco shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Cameco and Paladin Energy”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cameco | $2.49 billion | 18.69 | $421.96 million | $1.08 | 99.04 |
| Paladin Energy | $177.68 million | 18.74 | -$44.64 million | ($0.05) | -148.20 |
Cameco has higher revenue and earnings than Paladin Energy. Paladin Energy is trading at a lower price-to-earnings ratio than Cameco, indicating that it is currently the more affordable of the two stocks.
Summary
Cameco beats Paladin Energy on 12 of the 14 factors compared between the two stocks.
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.
About Paladin Energy
Paladin Energy Ltd develops, explores for, owns, and operates uranium mines in Australia, Canada, and Africa. The company operates through Exploration, Namibia, and Australia segments. Its flagship project is the Langer Heinrich mine located in the Namib Desert in Namibia. The company was formerly known as Paladin Resources Ltd and changed its name to Paladin Energy Limited in November 2007. Paladin Energy Ltd was incorporated in 1993 and is headquartered in Perth, Australia.
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