CCJ vs. FNV, STLD, MT, WLK, WPM, TECK, RS, NTR, CE, and GOLD
Should you be buying Cameco stock or one of its competitors? The main competitors of Cameco include Franco-Nevada (FNV), Steel Dynamics (STLD), ArcelorMittal (MT), Westlake (WLK), Wheaton Precious Metals (WPM), Teck Resources (TECK), Reliance (RS), Nutrien (NTR), Celanese (CE), and Barrick Gold (GOLD). These companies are all part of the "basic materials" sector.
Cameco (NYSE:CCJ) and Franco-Nevada (NYSE:FNV) are both large-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, community ranking, risk, dividends, institutional ownership, media sentiment, profitability and analyst recommendations.
70.2% of Cameco shares are held by institutional investors. Comparatively, 77.1% of Franco-Nevada shares are held by institutional investors. 1.0% of Cameco shares are held by insiders. Comparatively, 0.7% of Franco-Nevada shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Cameco has a net margin of 9.28% compared to Franco-Nevada's net margin of -39.88%. Franco-Nevada's return on equity of 10.81% beat Cameco's return on equity.
Cameco pays an annual dividend of $0.09 per share and has a dividend yield of 0.2%. Franco-Nevada pays an annual dividend of $1.43 per share and has a dividend yield of 1.1%. Cameco pays out 23.1% of its earnings in the form of a dividend. Franco-Nevada pays out -57.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Franco-Nevada is clearly the better dividend stock, given its higher yield and lower payout ratio.
Cameco has higher revenue and earnings than Franco-Nevada. Franco-Nevada is trading at a lower price-to-earnings ratio than Cameco, indicating that it is currently the more affordable of the two stocks.
In the previous week, Cameco had 2 more articles in the media than Franco-Nevada. MarketBeat recorded 12 mentions for Cameco and 10 mentions for Franco-Nevada. Franco-Nevada's average media sentiment score of 1.28 beat Cameco's score of 0.69 indicating that Franco-Nevada is being referred to more favorably in the news media.
Cameco presently has a consensus target price of $40.25, indicating a potential downside of 24.60%. Franco-Nevada has a consensus target price of $148.70, indicating a potential upside of 19.72%. Given Franco-Nevada's higher possible upside, analysts plainly believe Franco-Nevada is more favorable than Cameco.
Cameco received 119 more outperform votes than Franco-Nevada when rated by MarketBeat users. Likewise, 62.80% of users gave Cameco an outperform vote while only 55.15% of users gave Franco-Nevada an outperform vote.
Cameco has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, Franco-Nevada has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.
Summary
Cameco beats Franco-Nevada on 12 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding CCJ and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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