Cameco (NYSE:CCJ) and Energizer Resources (OTCMKTS:NSRCF) Head-To-Head Survey

Energizer Resources (OTCMKTS:NSRCF) 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 dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Profitability

This table compares Energizer Resources and Cameco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Energizer Resources	N/A	-26.46%	-14.56%
Cameco	14.97%	8.21%	5.55%

Valuation & Earnings

This table compares Energizer Resources and Cameco”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Energizer Resources	N/A	N/A	-$9.00 million	($0.08)	-3.71
Cameco	$2.29 billion	15.80	$125.42 million	$0.87	95.49

Cameco has higher revenue and earnings than Energizer Resources. Energizer Resources is trading at a lower price-to-earnings ratio than Cameco, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Energizer Resources has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Cameco has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Energizer Resources and Cameco, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Energizer Resources	0	0	0	0	0.00
Cameco	0	0	14	2	3.13

Cameco has a consensus price target of $89.55, suggesting a potential upside of 7.78%. Given Cameco’s stronger consensus rating and higher probable upside, analysts plainly believe Cameco is more favorable than Energizer Resources.

Institutional & Insider Ownership

70.2% of Cameco shares are held by institutional investors. 4.6% of Energizer Resources shares are held by insiders. Comparatively, 1.0% of Cameco shares are held by 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 Energizer Resources on 12 of the 14 factors compared between the two stocks.

About Energizer Resources

NextSource Materials Inc. acquires, explores for, and develops mineral properties in Madagascar and Canada. The company primarily explores for graphite and vanadium deposits. Its flagship property is the 100% owned Molo graphite mine project located in the Southern Madagascar Region, Madagascar. The company was formerly known as Energizer Resources Inc. The company was founded in 2004 and is headquartered in Toronto, Canada.

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.