Peninsula Energy (OTCMKTS: PENMF) and Cameco (NYSE:CCJ) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Risk & Volatility

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Peninsula Energy has a beta of 3.92, indicating that its share price is 292% more volatile than the S&P 500. Comparatively, Cameco has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Dividends

Cameco pays an annual dividend of $0.32 per share and has a dividend yield of 3.2%. Peninsula Energy does not pay a dividend. Cameco pays out 266.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of current ratings for Peninsula Energy and Cameco, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Peninsula Energy 0 0 1 0 3.00
Cameco 3 0 2 0 1.80

Cameco has a consensus price target of $22.50, indicating a potential upside of 122.33%. Given Cameco’s higher probable upside, analysts plainly believe Cameco is more favorable than Peninsula Energy.

Earnings & Valuation

This table compares Peninsula Energy and Cameco’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Peninsula Energy $5.77 million 7.25 N/A N/A N/A
Cameco $1.66 billion 2.41 -$158.09 million $0.12 84.33

Peninsula Energy has higher earnings, but lower revenue than Cameco.

Profitability

This table compares Peninsula Energy and Cameco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Peninsula Energy N/A N/A N/A
Cameco -9.72% 1.24% 0.79%

Institutional and Insider Ownership

51.9% of Cameco shares are held by institutional investors. 1.0% of Cameco shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Cameco beats Peninsula Energy on 8 of the 13 factors compared between the two stocks.

About Peninsula Energy

Peninsula Energy Limited explores for, develops, and mines uranium properties in the United States. It also explores molybdenum and gold ores. The company holds 100% interest in the Lance uranium projects that are located in Wyoming, the United States. It also jointly holds interest in the Karoo uranium exploration projects, which are situated in the Karoo Basin, South Africa; and RakiRaki Gold project located in Fiji. The company was formerly known as Peninsula Minerals Limited and changed its name to Peninsula Energy Limited in November 2010. Peninsula Energy Limited was founded in 1993 and is based in Subiaco, Australia.

About Cameco

Cameco Corporation produces and sells uranium worldwide. The company operates through three segments: Uranium, Fuel Services, and NUKEM. The Uranium segment is involved in the exploration for, mining, and milling, as well as purchase and sale of uranium concentrates. Its operating uranium properties include the Cigar Lake property located in Saskatchewan, Canada; the Inkai property situated in Kazakhstan; the Smith Ranch-Highland property located in Wyoming, the United States; and the Crow Butte property situated in Nebraska, the United States. 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 fuel bundles and reactor components for CANDU reactors; and provides consulting services to CANDU operators. The NUKEM segment trades in uranium and uranium-related products. The company sells its uranium and fuel services to nuclear utilities. Cameco Corporation was founded in 1987 and is headquartered in Saskatoon, Canada.

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