Contrasting Deep Yellow (OTCMKTS:DYLLF) & Cameco (NYSE:CCJ)

Cameco (NYSE:CCJ) and Deep Yellow (OTCMKTS:DYLLF) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Profitability

This table compares Cameco and Deep Yellow’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cameco	14.97%	8.21%	5.55%
Deep Yellow	N/A	N/A	N/A

Volatility & Risk

Cameco has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Deep Yellow has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Institutional and Insider Ownership

70.2% of Cameco shares are owned by institutional investors. 1.0% of Cameco shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Cameco and Deep Yellow, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cameco	0	0	11	3	3.21
Deep Yellow	0	0	0	0	0.00

Cameco presently has a consensus target price of $82.6540, suggesting a potential upside of 9.46%. Given Cameco’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Cameco is more favorable than Deep Yellow.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cameco	$2.29 billion	14.36	$125.42 million	$0.87	86.79
Deep Yellow	$2.56 million	355.87	N/A	N/A	N/A

Cameco has higher revenue and earnings than Deep Yellow.

Summary

Cameco beats Deep Yellow on 11 of the 12 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 Deep Yellow

Deep Yellow Limited, together with its subsidiaries, operates as a uranium exploration company in Namibia. The company holds a 100% interest in the Reptile project, which covers an area of 896 square kilometers (km2); 65% interest in the Nova Joint Venture covering an area of 599 km2; and 85% interest in the Yellow Dune Joint Venture covering an area of 190 km2. It is involved in the iron ore exploration and property investment businesses. The company was incorporated in 1985 and is headquartered in Subiaco, Australia.