Reviewing Vulcan Materials (NYSE:VMC) & Centrus Energy (NYSE:LEU)

Vulcan Materials (NYSE:VMCGet Rating) and Centrus Energy (NYSE:LEUGet Rating) are both construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Vulcan Materials and Centrus Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vulcan Materials 0 3 9 0 2.75
Centrus Energy 0 0 0 0 N/A

Vulcan Materials currently has a consensus price target of $202.00, suggesting a potential upside of 10.82%. Given Vulcan Materials’ higher possible upside, equities analysts plainly believe Vulcan Materials is more favorable than Centrus Energy.

Insider & Institutional Ownership

90.3% of Vulcan Materials shares are held by institutional investors. Comparatively, 41.1% of Centrus Energy shares are held by institutional investors. 0.6% of Vulcan Materials shares are held by insiders. Comparatively, 10.3% of Centrus Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Vulcan Materials has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Centrus Energy has a beta of 2.12, suggesting that its share price is 112% more volatile than the S&P 500.

Valuation & Earnings

This table compares Vulcan Materials and Centrus Energy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vulcan Materials $5.55 billion 4.36 $670.80 million $4.45 40.96
Centrus Energy $298.30 million 1.85 $175.00 million $8.03 4.72

Vulcan Materials has higher revenue and earnings than Centrus Energy. Centrus Energy is trading at a lower price-to-earnings ratio than Vulcan Materials, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Vulcan Materials and Centrus Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vulcan Materials 8.26% 10.56% 5.02%
Centrus Energy 57.33% -151.53% 31.56%

Summary

Vulcan Materials beats Centrus Energy on 8 of the 13 factors compared between the two stocks.

About Vulcan Materials

(Get Rating)

Vulcan Materials Company, together with its subsidiaries, produces and supplies construction aggregates primarily in the United States. It operates through four segments: Aggregates, Asphalt, Concrete, and Calcium. The Aggregates segment provides crushed stones, sand and gravel, sand, and other aggregates; and related products and services that are applied in construction and maintenance of highways, streets, and other public works, as well as in the construction of housing and commercial, industrial, and other nonresidential facilities. The Asphalt Mix segment offers asphalt mix in Alabama, Arizona, California, New Mexico, Tennessee, and Texas, as well as engages in the asphalt construction paving activity in Alabama, Tennessee, and Texas. The Concrete segment provides ready-mixed concrete in California, Maryland, New Jersey, New York, Oklahoma, Pennsylvania, Texas and Virginia, and Washington D.C. The Calcium segment mines, produces, and sells calcium products for the animal feed, plastics, and water treatment industries. The company was formerly known as Virginia Holdco, Inc. and changed its name to Vulcan Materials Company. Vulcan Materials Company was founded in 1909 and is headquartered in Birmingham, Alabama.

About Centrus Energy

(Get Rating)

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

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