Vaalco Energy (NYSE:EGY – 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 businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.
Insider and Institutional Ownership
50.3% of Vaalco Energy shares are owned by institutional investors. Comparatively, 50.0% of Centrus Energy shares are owned by institutional investors. 3.0% of Vaalco Energy shares are owned by company insiders. Comparatively, 0.7% of Centrus Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Vaalco Energy has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500. Comparatively, Centrus Energy has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.
Earnings and Valuation
This table compares Vaalco Energy and Centrus Energy”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vaalco Energy | $419.87 million | 1.61 | -$41.39 million | ($1.06) | -6.05 |
| Centrus Energy | $473.90 million | 4.71 | $77.80 million | $2.20 | 50.80 |
Centrus Energy has higher revenue and earnings than Vaalco Energy. Vaalco Energy 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 Vaalco Energy and Centrus Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vaalco Energy | -31.11% | -14.36% | -6.41% |
| Centrus Energy | 10.23% | 7.06% | 2.01% |
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Vaalco Energy and Centrus Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vaalco Energy | 0 | 2 | 0 | 0 | 2.00 |
| Centrus Energy | 0 | 9 | 8 | 2 | 2.63 |
Vaalco Energy currently has a consensus price target of $7.30, suggesting a potential upside of 13.80%. Centrus Energy has a consensus price target of $193.12, suggesting a potential upside of 72.79%. Given Centrus Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Centrus Energy is more favorable than Vaalco Energy.
Summary
Centrus Energy beats Vaalco Energy on 13 of the 15 factors compared between the two stocks.
About Vaalco Energy
VAALCO Energy, Inc., an independent energy company, engages in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids in Gabon, Egypt, Equatorial Guinea, and Canada. The company holds 58.8% interest in the Etame production sharing contract related to the Etame Marin block covering an area of approximately 46,200 gross acres located offshore in the Republic of Gabon in West Africa. It also owns 100% interest in the Eastern Desert, which contains West Gharib, West Bakr and North West Gharib merged concessions covering as area of approximately 45,067 acres, as well as Western Desert, which contains the South Ghazalat concession covering as area of approximately 7,340 acres located in Egypt. In addition, the company production and working interests in Cardium light oil and Mannville liquids-rich gas assets covering as area of 47,400 gross acres located near the north of Calgary, Alberta; and an undeveloped block offshore Equatorial Guinea, West Africa. VAALCO Energy, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.
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.
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