Contrasting Summit Materials (NYSE:SUM) & Centrus Energy (NYSE:LEU)

Summit Materials (NYSE:SUMGet Rating) and Centrus Energy (NYSE:LEUGet Rating) are both construction companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Summit Materials 5.84% 7.02% 2.90%
Centrus Energy 60.97% -103.39% 38.23%

Institutional and Insider Ownership

49.0% of Centrus Energy shares are owned by institutional investors. 0.8% of Summit Materials shares are owned by company insiders. Comparatively, 14.0% of Centrus Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Summit Materials has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, Centrus Energy has a beta of 2.35, suggesting that its share price is 135% more volatile than the S&P 500.

Earnings and Valuation

This table compares Summit Materials and Centrus Energy’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Summit Materials $2.41 billion 1.15 $154.28 million $1.18 19.92
Centrus Energy $298.30 million 1.28 $175.00 million $9.68 2.73

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Summit Materials and Centrus Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Summit Materials 0 3 3 0 2.50
Centrus Energy 0 0 0 0 N/A

Summit Materials presently has a consensus price target of $38.83, indicating a potential upside of 65.18%. Given Summit Materials’ higher probable upside, analysts plainly believe Summit Materials is more favorable than Centrus Energy.

Summary

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

About Summit Materials (Get Rating)

Summit Materials, Inc., through its subsidiaries, produces and sells construction materials and related downstream products for the public infrastructure, and residential and nonresidential end markets. It operates through three segments: West, East, and Cement. The company's products include aggregates, cement, ready-mix concrete, asphalt paving mixes, and concrete products, as well as plastics components. It also provides asphalt paving and related services to the private and public infrastructure sectors. In addition, the company operates municipal waste, construction, and demolition debris landfills; and liquid asphalt terminals. It has operations in the United States; and in British Columbia, Canada. The company was founded in 2009 and is headquartered in Denver, Colorado.

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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