CCJ vs. STLD, MT, WLK, FNV, WPM, CE, RS, TECK, ALB, and NTR
Should you be buying Cameco stock or one of its competitors? The main competitors of Cameco include Steel Dynamics (STLD), ArcelorMittal (MT), Westlake (WLK), Franco-Nevada (FNV), Wheaton Precious Metals (WPM), Celanese (CE), Reliance (RS), Teck Resources (TECK), Albemarle (ALB), and Nutrien (NTR). These companies are all part of the "basic materials" sector.
Cameco (NYSE:CCJ) and Steel Dynamics (NASDAQ:STLD) are both large-cap basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, community ranking, media sentiment, institutional ownership and valuation.
Steel Dynamics received 319 more outperform votes than Cameco when rated by MarketBeat users. Likewise, 68.36% of users gave Steel Dynamics an outperform vote while only 62.80% of users gave Cameco an outperform vote.
Steel Dynamics has a net margin of 12.89% compared to Cameco's net margin of 9.28%. Steel Dynamics' return on equity of 27.62% beat Cameco's return on equity.
Cameco has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Steel Dynamics has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.
Cameco pays an annual dividend of $0.09 per share and has a dividend yield of 0.2%. Steel Dynamics pays an annual dividend of $1.84 per share and has a dividend yield of 1.4%. Cameco pays out 23.1% of its earnings in the form of a dividend. Steel Dynamics pays out 12.6% 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. Steel Dynamics is clearly the better dividend stock, given its higher yield and lower payout ratio.
Steel Dynamics has higher revenue and earnings than Cameco. Steel Dynamics is trading at a lower price-to-earnings ratio than Cameco, indicating that it is currently the more affordable of the two stocks.
70.2% of Cameco shares are owned by institutional investors. Comparatively, 82.4% of Steel Dynamics shares are owned by institutional investors. 1.0% of Cameco shares are owned by insiders. Comparatively, 6.0% of Steel Dynamics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Cameco currently has a consensus price target of $40.25, suggesting a potential downside of 24.13%. Steel Dynamics has a consensus price target of $121.17, suggesting a potential downside of 9.53%. Given Steel Dynamics' higher probable upside, analysts clearly believe Steel Dynamics is more favorable than Cameco.
In the previous week, Steel Dynamics had 3 more articles in the media than Cameco. MarketBeat recorded 16 mentions for Steel Dynamics and 13 mentions for Cameco. Steel Dynamics' average media sentiment score of 0.86 beat Cameco's score of 0.85 indicating that Steel Dynamics is being referred to more favorably in the news media.
Summary
Steel Dynamics beats Cameco on 16 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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