In today’s competitive energy market, two companies stand out in the uranium sector: Cameco Corporation (CCJ) and Uranium Royalty Corp. (UROY). Both firms are engaged in uranium-related activities, with Cameco focusing on production and sales, while Uranium Royalty operates as a royalty company. Their differing strategies provide a fascinating contrast for investors. Join me as I explore which of these companies offers more compelling opportunities for your investment portfolio.
Table of contents
Company Overview
Cameco Corporation Overview
Cameco Corporation (CCJ) is a leading player in the uranium industry, dedicated to the production and sale of uranium. Established in 1987 and headquartered in Saskatoon, Canada, Cameco operates through two main segments: Uranium and Fuel Services. The Uranium segment focuses on exploring, mining, and milling uranium, while the Fuel Services segment is responsible for refining and fabricating uranium concentrate into fuel bundles for nuclear reactors. With a market cap of approximately $39.8B, Cameco serves nuclear utilities across the Americas, Europe, and Asia, positioning itself as a vital component of the global nuclear energy supply chain.
Uranium Royalty Corp. Overview
Uranium Royalty Corp. (UROY), founded in 2017 and based in Vancouver, Canada, operates as a pure-play uranium royalty company. The firm specializes in acquiring and managing a diversified portfolio of uranium royalty interests across various projects in Canada, the United States, and Namibia. With a market capitalization of around $488M, Uranium Royalty Corp. focuses on generating revenue through royalties rather than direct production, allowing it to mitigate operational risks associated with mining while capitalizing on the growing demand for uranium in nuclear energy production.
Key similarities and differences
Both Cameco Corporation and Uranium Royalty Corp. operate within the uranium sector, albeit through different business models. Cameco is involved in direct production and processing of uranium, which entails higher operational risks and capital expenditure. In contrast, Uranium Royalty Corp. adopts a royalty-based model, offering lower risk exposure by managing a portfolio of royalty interests without the burdens of production. This fundamental difference shapes their respective strategies and market positions.
Income Statement Comparison
In the table below, I compare key income statement metrics for Cameco Corporation (CCJ) and Uranium Royalty Corp. (UROY) for their most recent fiscal years.
| Metric | [Cameco Corporation (CCJ)] | [Uranium Royalty Corp. (UROY)] |
|---|---|---|
| Market Cap | 39.84B | 0.49B |
| Revenue | 3.14B | 15.60M |
| EBITDA | 789.34M | -4.75M |
| EBIT | 474.91M | -4.87M |
| Net Income | 171.85M | -5.65M |
| EPS | 0.40 | -0.0446 |
| Fiscal Year | 2024 | 2025 |
Interpretation of Income Statement
Cameco Corporation has demonstrated robust performance with revenue growth from 2.59B in 2023 to 3.14B in 2024, resulting in a healthy net income of 171.85M. This indicates a stable upward trend and improved margins. In contrast, Uranium Royalty Corp. has faced significant challenges, reporting a decline in revenue from 42.71M in 2024 to 15.60M in 2025 and a net loss of 5.65M. The negative EBITDA further highlights operational difficulties, suggesting a need for strategic reevaluation as the company navigates a highly competitive market.
Financial Ratios Comparison
The following table provides a comparison of key financial ratios for Cameco Corporation (CCJ) and Uranium Royalty Corp (UROY) based on the most recent data available.
| Metric | CCJ | UROY |
|---|---|---|
| ROE | 2.70% | -1.92% |
| ROIC | 3.79% | -1.73% |
| P/E | 187.01 | -56.00 |
| P/B | 5.05 | 1.07 |
| Current Ratio | 1.62 | 233.49 |
| Quick Ratio | 0.80 | 233.49 |
| D/E | 0.20 | 0.00071 |
| Debt-to-Assets | 13.08% | 0.07% |
| Interest Coverage | 4.60 | -11.02 |
| Asset Turnover | 0.32 | 0.05 |
| Fixed Asset Turnover | 0.95 | 82.51 |
| Payout Ratio | 40.52% | 0% |
| Dividend Yield | 0.22% | 0% |
Interpretation of Financial Ratios
Cameco Corporation shows strong performance in return metrics (ROE and ROIC) and manageable debt levels, indicating solid financial health. Conversely, Uranium Royalty Corp reports negative returns and an extremely high current ratio, which may suggest inefficiencies in utilizing assets. Additionally, UROY’s negative interest coverage raises serious concerns about its ability to meet financial obligations. Therefore, I recommend careful scrutiny of UROY’s financial stability before considering an investment.
Dividend and Shareholder Returns
Cameco Corporation (CCJ) pays dividends with a current yield of approximately 0.22% and a payout ratio of around 40.5%. The company has demonstrated a consistent trend in dividend payments, supported by free cash flow. However, risks include potential unsustainable distributions if profits decline.
On the other hand, Uranium Royalty Corp. (UROY) does not distribute dividends, likely due to its reinvestment strategy aimed at growth and exploration. While it lacks dividend returns, UROY engages in share buybacks, which may enhance shareholder value in the long run. Overall, CCJ’s dividends suggest a strong commitment to shareholder returns, while UROY’s strategy may align with long-term growth aspirations.
Strategic Positioning
Cameco Corporation (CCJ) holds a significant market share in uranium production, supported by its extensive operations in exploration, mining, and fuel services. The company faces competitive pressure from Uranium Royalty Corp. (UROY), which operates as a royalty company with diverse uranium interests across North America. Technological advancements in uranium extraction and increased demand for nuclear energy present both opportunities and challenges for these companies, necessitating strategic adaptations to maintain their market positions.
Stock Comparison
In the past year, both Cameco Corporation (CCJ) and Uranium Royalty Corp. (UROY) have exhibited notable price movements, reflecting the dynamic nature of the uranium sector. CCJ has shown significant upward momentum, while UROY’s recent performance has been more subdued.
Trend Analysis
Over the past year, CCJ’s stock has experienced a remarkable price change of +94.7%, indicating a strong bullish trend. Despite this impressive increase, the trend is currently showing signs of deceleration, with a highest price of 102.21 and a lowest price of 36.96. The standard deviation of 16.04 suggests moderate volatility in its price movements.
Conversely, UROY has recorded a modest price change of +0.55% over the same period, also reflecting a bullish trend. However, in the more recent analysis, UROY has faced a downward shift, with a price change of -14.92% from September 28, 2025, to December 14, 2025. The highest price during this period was 4.86, and the lowest was 1.6, with a standard deviation of 0.38 indicating low volatility.
In summary, while CCJ remains in a bullish trend overall, its recent behavior signals a deceleration in price growth. UROY, despite its long-term bullish position, is currently experiencing a bearish trend in the short term. Investors should weigh these factors carefully when considering their positions in these stocks.
Analyst Opinions
Recent analyst recommendations for Cameco Corporation (CCJ) indicate a cautious “buy” rating with an overall score of 3. Analysts noted its strong return on assets and manageable debt levels as key strengths, despite lower scores in price-to-earnings and price-to-book ratios. On the other hand, Uranium Royalty Corp. (UROY) received a “hold” rating, scoring a 2 overall, primarily due to weak performance in discounted cash flow and return metrics. The consensus for CCJ leans towards a buy, while UROY suggests a more cautious approach.
Stock Grades
I have gathered reliable stock grades for two companies, Cameco Corporation (CCJ) and Uranium Royalty Corp. (UROY), from credible grading companies. Here’s a look at their current ratings:
Cameco Corporation (CCJ) Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| RBC Capital | maintain | Outperform | 2025-11-13 |
| RBC Capital | maintain | Outperform | 2025-10-31 |
| Goldman Sachs | maintain | Buy | 2025-10-29 |
| RBC Capital | maintain | Outperform | 2025-08-01 |
| RBC Capital | maintain | Outperform | 2025-06-20 |
| GLJ Research | maintain | Buy | 2025-06-12 |
| Goldman Sachs | maintain | Buy | 2025-06-11 |
| GLJ Research | maintain | Buy | 2025-03-12 |
| RBC Capital | maintain | Outperform | 2025-03-04 |
| Scotiabank | maintain | Outperform | 2024-08-19 |
Uranium Royalty Corp. (UROY) Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| HC Wainwright & Co. | maintain | Buy | 2025-04-22 |
| HC Wainwright & Co. | maintain | Buy | 2024-12-19 |
| HC Wainwright & Co. | maintain | Buy | 2024-09-17 |
| HC Wainwright & Co. | maintain | Buy | 2024-06-17 |
| HC Wainwright & Co. | maintain | Buy | 2024-03-11 |
| HC Wainwright & Co. | maintain | Buy | 2022-01-03 |
| HC Wainwright & Co. | maintain | Buy | 2021-09-29 |
| HC Wainwright & Co. | maintain | Buy | 2021-09-28 |
| HC Wainwright & Co. | maintain | Buy | 2021-07-02 |
| HC Wainwright & Co. | maintain | Buy | 2021-07-01 |
Overall, both companies maintain strong ratings, with Cameco Corporation consistently rated as “Outperform” by multiple firms, indicating a positive outlook. Uranium Royalty Corp. has sustained a “Buy” rating from HC Wainwright & Co., suggesting that it remains a favorable investment choice in the uranium sector.
Target Prices
Cameco Corporation (CCJ) has a strong consensus among analysts regarding its target prices.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Cameco Corporation | 109 | 99.74 | 103.19 |
Analysts expect Cameco’s stock to reach a consensus target of 103.19, indicating potential upside from its current price of 91.5. Unfortunately, no verified target price data is available for Uranium Royalty Corp. (UROY), suggesting a more uncertain outlook among analysts.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Cameco Corporation (CCJ) and Uranium Royalty Corp. (UROY), based on recent financial data.
| Criterion | Cameco Corporation (CCJ) | Uranium Royalty Corp. (UROY) |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | Strong (Net Profit Margin: 13.9%) | Weak (Net Profit Margin: -36.3%) |
| Innovation | Moderate | Low |
| Global presence | Strong | Limited |
| Market Share | High | Low |
| Debt level | Low (Debt to Equity: 0.29) | Minimal (Debt to Equity: 0.0007) |
Key takeaways: Cameco shows solid profitability and a strong global presence, making it a stronger candidate for investment compared to Uranium Royalty Corp., which struggles with profitability and market share.
Risk Analysis
In the following table, I assess the key risks associated with Cameco Corporation (CCJ) and Uranium Royalty Corp. (UROY).
| Metric | Cameco Corporation (CCJ) | Uranium Royalty Corp. (UROY) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | High | High |
| Operational Risk | Moderate | High |
| Environmental Risk | Moderate | Low |
| Geopolitical Risk | High | Moderate |
Both companies face significant market and regulatory risks, particularly in the dynamic uranium sector. CCJ has a moderate operational risk, while UROY’s financials indicate a high operational risk tied to revenue generation challenges.
Which one to choose?
In comparing Cameco Corporation (CCJ) and Uranium Royalty Corp. (UROY), the fundamentals indicate that CCJ is the more robust option for investors. CCJ has a market cap of approximately 32.1B CAD and displays a strong revenue growth with a gross profit margin of 33.9% in 2024. Its price-to-earnings ratio stands at 187.01, reflecting high investor expectations. In contrast, UROY, with a market cap of about 316M CAD, has struggled with profitability and carries a higher debt-to-equity ratio, indicating greater financial risk, evidenced by its “C” rating.
For those focused on growth and willing to embrace some volatility, CCJ appears favorable for long-term investment. Conversely, conservative investors may find UROY less appealing due to its inconsistent performance and higher risk profile related to market dependence and competition in the uranium sector.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Cameco Corporation and Uranium Royalty Corp. to enhance your investment decisions:
