Head to Head Review: Centrus Energy (NYSE:LEU) and Greenfire Resources (NYSE:GFR)
by Michael Walen · The Markets DailyGreenfire Resources (NYSE:GFR – Get Free Report) and Centrus Energy (NYSE:LEU – Get Free Report) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.
Valuation & Earnings
This table compares Greenfire Resources 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 | |
| Greenfire Resources | $431.77 million | 1.89 | $34.00 million | ($0.28) | -23.27 |
| Centrus Energy | $448.70 million | 6.77 | $77.80 million | $2.20 | 69.23 |
Centrus Energy has higher revenue and earnings than Greenfire Resources. Greenfire 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 Greenfire Resources and Centrus Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Greenfire Resources | -6.36% | -3.50% | -2.89% |
| Centrus Energy | 10.23% | 7.06% | 2.01% |
Risk and Volatility
Greenfire Resources has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500. Comparatively, Centrus Energy has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.
Institutional & Insider Ownership
88.9% of Greenfire Resources shares are owned by institutional investors. Comparatively, 50.0% of Centrus Energy shares are owned by institutional investors. 20.0% of Greenfire Resources shares are owned by insiders. Comparatively, 0.7% of Centrus Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent recommendations and price targets for Greenfire Resources and Centrus Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Greenfire Resources | 1 | 1 | 1 | 1 | 2.50 |
| Centrus Energy | 0 | 9 | 6 | 1 | 2.50 |
Greenfire Resources presently has a consensus price target of $11.50, suggesting a potential upside of 76.49%. Centrus Energy has a consensus price target of $235.71, suggesting a potential upside of 54.76%. Given Greenfire Resources’ higher possible upside, equities research analysts clearly believe Greenfire Resources is more favorable than Centrus Energy.
Summary
Centrus Energy beats Greenfire Resources on 10 of the 13 factors compared between the two stocks.
About Greenfire Resources
Greenfire Resources Ltd., together with its subsidiaries, engages in the development, exploration, and operation of oil and gas properties in the Athabasca oil sands region of Alberta. The company operates the Tier-1 oil sands assets located in Western Canada. It utilizes steam-assisted gravity drainage (SAGD) extraction technology, a situ thermal oil recovery process to recover diluted and non- diluted bitumen. The company is headquartered in Calgary, Canada.
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.