In the evolving uranium industry, Centrus Energy Corp. (LEU) and IsoEnergy Ltd. (ISOU) stand out as key players, each with distinct strategies and market footprints. Centrus focuses on supplying nuclear fuel and technical solutions globally, while IsoEnergy targets uranium exploration in Canada’s Athabasca Basin. Their overlapping sectors and differing approaches make for a compelling comparison. In this article, I will help you determine which company holds the most promise for your investment portfolio.
Table of contents
Companies Overview
I will begin the comparison between Centrus Energy Corp. and IsoEnergy Ltd. by providing an overview of these two companies and their main differences.
Centrus Energy Corp. Overview
Centrus Energy Corp. supplies nuclear fuel and services for the nuclear power industry across the US, Japan, Belgium, and other international markets. Operating through Low-Enriched Uranium and Technical Solutions segments, it offers enrichment services and technical support. Founded in 1998 and headquartered in Bethesda, Maryland, Centrus holds a significant position in uranium energy with a market cap of 5.36B USD.
IsoEnergy Ltd. Overview
IsoEnergy Ltd. focuses on uranium mineral acquisition, development, and exploration primarily in the Athabasca Basin of Saskatchewan, Canada. Incorporated in 2016 and based in Saskatoon, it is a smaller player with a market cap of 599M USD. IsoEnergy is a subsidiary of NexGen Energy Ltd., concentrating on early-stage uranium properties with limited full-time staff.
Key similarities and differences
Both companies operate in the uranium sector within the energy industry but differ markedly in scale and operations. Centrus Energy provides nuclear fuel supply and technical services globally, while IsoEnergy focuses on uranium exploration and development in Canada. Centrus has a larger workforce and market cap, reflecting its established market presence, compared to IsoEnergy’s exploration-driven business model.
Income Statement Comparison
This table compares the key income statement metrics for Centrus Energy Corp. (LEU) and IsoEnergy Ltd. (ISOU) for the fiscal year 2024, highlighting their financial performance.
| Metric | Centrus Energy Corp. (LEU) | IsoEnergy Ltd. (ISOU) |
|---|---|---|
| Market Cap | 5.36B USD | 599M CAD |
| Revenue | 442M USD | 0 CAD |
| EBITDA | 86.5M USD | -42.5M CAD |
| EBIT | 75.7M USD | -42.8M CAD |
| Net Income | 73.2M USD | -42.1M CAD |
| EPS | 4.49 USD | -1.38 CAD |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Centrus Energy Corp.
Centrus Energy Corp. showed a strong overall revenue growth of 78.8% from 2020 to 2024, with net income rising by 34.56% over the period. Margins remain generally favorable, including a 25.23% gross margin and a net margin of 16.56%. However, in 2024, despite revenue increasing 38.04%, net income and EPS declined, reflecting margin pressure and slower profitability growth.
IsoEnergy Ltd.
IsoEnergy Ltd. reported no revenue throughout 2020–2024, with consistent net losses each year. Margins are unfavorable, as gross, EBIT, and net margins are zero or negative due to ongoing operational expenses and exploration costs. The company’s losses deepened in 2024, with EPS declining sharply by 76.47%, indicating continued challenges in achieving profitability or growth.
Which one has the stronger fundamentals?
Centrus Energy Corp. demonstrates stronger fundamentals, benefiting from consistent revenue growth and positive net income with generally favorable margins. In contrast, IsoEnergy Ltd. exhibits persistent losses, no revenue generation, and unfavorable margin trends. The disparity highlights Centrus’s more established and profitable operations compared to IsoEnergy’s exploratory and developmental status.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Centrus Energy Corp. (LEU) and IsoEnergy Ltd. (ISOU) based on their most recent fiscal year data from 2024.
| Ratios | Centrus Energy Corp. (LEU) | IsoEnergy Ltd. (ISOU) |
|---|---|---|
| ROE | 45.4% | -13.9% |
| ROIC | 4.0% | -12.5% |
| P/E | 14.8 | -9.6 |
| P/B | 6.73 | 1.34 |
| Current Ratio | 2.93 | 1.70 |
| Quick Ratio | 2.46 | 1.70 |
| D/E | 0.97 | 0.10 |
| Debt-to-Assets | 14.4% | 9.0% |
| Interest Coverage | 17.8 | -32.1 |
| Asset Turnover | 0.40 | 0 |
| Fixed Asset Turnover | 47.0 | 0 |
| Payout ratio | 0% | 0% |
| Dividend yield | 0% | 0% |
Interpretation of the Ratios
Centrus Energy Corp.
Centrus Energy demonstrates generally strong financial ratios with favorable net margin at 16.56% and return on equity of 45.35%, indicating efficient profitability. However, its return on invested capital at 4.02% and price-to-book ratio of 6.73 suggest some weaknesses. The company does not pay dividends, likely prioritizing reinvestment or operational needs given its zero dividend yield and no payout history.
IsoEnergy Ltd.
IsoEnergy’s ratios indicate several challenges, including negative returns on equity (-13.9%) and invested capital (-12.5%), reflecting unprofitability and operational struggles. Favorable price-to-earnings and price-to-book ratios suggest market optimism. The company pays no dividends, consistent with its likely focus on exploration and growth, supported by a modest current ratio of 1.7 and low debt levels.
Which one has the best ratios?
Centrus Energy Corp. holds a more favorable overall ratio profile, with a majority of positive profitability and liquidity indicators, despite some concerns around invested capital returns and valuation. IsoEnergy shows notably weaker profitability and coverage metrics, with more unfavorable ratios, reflecting higher risk and early-stage development status.
Strategic Positioning
This section compares the strategic positioning of Centrus Energy Corp. and IsoEnergy Ltd., focusing on market position, key segments, and exposure to technological disruption:
Centrus Energy Corp.
- Established player with strong presence in US and global uranium markets, facing moderate competitive pressure.
- Diversified segments including Low-Enriched Uranium sales and technical services driving business.
- Exposure to technological advancements in nuclear fuel enrichment and engineering services.
IsoEnergy Ltd.
- Smaller market cap with focus on uranium exploration, facing competition in exploration sector.
- Concentrated on acquisition and development of uranium properties in Athabasca Basin.
- Limited exposure to technological disruption, mainly focused on mineral property development.
Centrus Energy Corp. vs IsoEnergy Ltd. Positioning
Centrus Energy shows a diversified approach with established revenue streams in uranium products and technical services. IsoEnergy is more concentrated on uranium exploration, which may imply higher risk and dependency on mining developments.
Which has the best competitive advantage?
Neither company currently demonstrates a strong economic moat; both are shedding value, though Centrus’s profitability is declining while IsoEnergy shows improving profitability, indicating slightly better potential for future competitive advantage.
Stock Comparison
The stock price movements of Centrus Energy Corp. (LEU) and IsoEnergy Ltd. (ISOU) over the past year show significant bullish trends with contrasting recent period dynamics in price and volume activity.
Trend Analysis
Centrus Energy Corp. (LEU) exhibited a strong bullish trend over the last 12 months with a 595.57% price increase, though the trend shows deceleration and high volatility, with a recent 20.05% decline indicating short-term weakness.
IsoEnergy Ltd. (ISOU) recorded a bullish trend with a 68.57% price rise over the same period, accompanied by accelerated momentum and very low volatility, while recent trading shows continued moderate gains of 20.88%.
Comparing the two, Centrus Energy Corp. delivered the highest overall market performance with a substantially larger price increase despite recent downward pressure, outperforming IsoEnergy Ltd. across the year.
Target Prices
The consensus target price for Centrus Energy Corp. suggests a moderately bullish outlook among analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Centrus Energy Corp. | 390 | 125 | 288.4 |
Analysts expect Centrus Energy Corp.’s stock to trade below its target consensus of 288.4, compared to the current price of 306.19 USD. No verified target price data is available for IsoEnergy Ltd.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Centrus Energy Corp. and IsoEnergy Ltd.:
Rating Comparison
Centrus Energy Corp. Rating
- Rating: B, considered Very Favorable by analysts.
- Discounted Cash Flow Score: 4, Favorable valuation.
- ROE Score: 5, Very Favorable profitability from equity.
- ROA Score: 4, Favorable asset utilization.
- Debt To Equity Score: 1, Very Unfavorable financial risk.
- Overall Score: 3, Moderate overall financial standing.
IsoEnergy Ltd. Rating
- Rating: C-, also considered Very Favorable.
- Discounted Cash Flow Score: 1, Very Unfavorable.
- ROE Score: 1, Very Unfavorable.
- ROA Score: 1, Very Unfavorable.
- Debt To Equity Score: 3, Moderate financial risk.
- Overall Score: 1, Very Unfavorable overall score.
Which one is the best rated?
Based strictly on the data, Centrus Energy Corp. holds higher ratings and scores across most metrics including ROE, ROA, and DCF, despite a weaker debt-to-equity score, making it the better rated company overall.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for Centrus Energy Corp. (LEU) and IsoEnergy Ltd. (ISOU):
LEU Scores
- Altman Z-Score: 2.70, grey zone indicating moderate bankruptcy risk.
- Piotroski Score: 5, average financial strength.
ISOU Scores
- Altman Z-Score: 19.22, safe zone showing very low bankruptcy risk.
- Piotroski Score: 2, very weak financial strength.
Which company has the best scores?
Based strictly on the provided data, ISOU has a significantly stronger Altman Z-Score, indicating lower bankruptcy risk, but a very weak Piotroski Score. LEU shows moderate bankruptcy risk but a better Piotroski Score reflecting stronger financial health overall.
Grades Comparison
Here is the comparison of recent grades provided by reputable grading companies for the two companies:
Centrus Energy Corp. Grades
The table below summarizes recent grades from established financial firms for Centrus Energy Corp.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Roth Capital | Maintain | Neutral | 2026-01-08 |
| B. Riley Securities | Maintain | Buy | 2025-12-22 |
| Needham | Maintain | Buy | 2025-12-22 |
| UBS | Maintain | Neutral | 2025-11-25 |
| JP Morgan | Maintain | Neutral | 2025-11-07 |
| JP Morgan | Maintain | Neutral | 2025-10-31 |
| HC Wainwright & Co. | Maintain | Buy | 2025-08-26 |
| Evercore ISI Group | Maintain | Outperform | 2025-08-08 |
| B of A Securities | Downgrade | Neutral | 2025-08-07 |
| JP Morgan | Maintain | Neutral | 2025-08-07 |
The overall trend for Centrus Energy Corp. shows a mix of Neutral and Buy ratings, with a consensus rating of Hold, indicating moderate confidence among analysts.
No reliable grades are available for IsoEnergy Ltd., so no grading table is provided. The absence of official grades implies higher uncertainty and risk assessment difficulty for investors.
Which company has the best grades?
Centrus Energy Corp. has received more comprehensive and generally positive grades from multiple reputable firms, mainly Neutral to Buy, while IsoEnergy Ltd. lacks any available official grades. This gives Centrus Energy Corp. a clearer analyst consensus, potentially offering investors more visibility on risk and performance expectations.
Strengths and Weaknesses
Below is a comparative overview of the strengths and weaknesses of Centrus Energy Corp. (LEU) and IsoEnergy Ltd. (ISOU) based on their recent financial and operational data.
| Criterion | Centrus Energy Corp. (LEU) | IsoEnergy Ltd. (ISOU) |
|---|---|---|
| Diversification | Moderate: revenue from separative work units, uranium, and services | Limited: primarily focused on uranium exploration |
| Profitability | Favorable net margin (16.56%) and ROE (45.35%), but ROIC below WACC (4.02% vs 9.06%) | Unfavorable profitability with negative net margin (0%) and ROIC (-12.5%) |
| Innovation | Moderate: steady growth in product revenue, but declining ROIC trend | Early-stage with growing ROIC but still value destroying |
| Global presence | Strong: established contracts and global uranium supply | Limited: primarily regional exploration focus |
| Market Share | Solid in nuclear fuel supply with growing separative work units revenue | Small and emerging player without significant market share yet |
Key takeaways: Centrus Energy shows solid profitability and a diverse revenue base but is currently destroying value due to a declining ROIC below its cost of capital. IsoEnergy remains a riskier, less diversified exploration company with improving but still unfavorable profitability metrics. Investors should weigh Centrus’s more stable cash flows against IsoEnergy’s growth potential tempered by financial challenges.
Risk Analysis
Below is a comparative risk overview for Centrus Energy Corp. (LEU) and IsoEnergy Ltd. (ISOU) based on the most recent 2024 financial and operational data.
| Metric | Centrus Energy Corp. (LEU) | IsoEnergy Ltd. (ISOU) |
|---|---|---|
| Market Risk | Moderate (Beta 1.25, volatile price range) | Moderate (Beta 0.96, smaller market cap) |
| Debt level | Moderate (Debt/Equity ~0.97, interest coverage strong) | Low (Debt/Equity 0.1, but weak interest coverage) |
| Regulatory Risk | Elevated (Nuclear fuel sector highly regulated in US and abroad) | Elevated (Exploration activities under strict Canadian regulations) |
| Operational Risk | Moderate (Technical & manufacturing services with stable revenue) | High (Exploration stage, no revenue, operational uncertainties) |
| Environmental Risk | Significant (Nuclear fuel production with strict environmental scrutiny) | Significant (Uranium exploration with potential environmental impact) |
| Geopolitical Risk | Moderate (US-based but with international operations) | Moderate (Canadian operations but impacted by global uranium demand) |
The most impactful and likely risks are regulatory and environmental, given the nuclear/uranium sector’s strict compliance requirements and public sensitivity. Centrus shows moderate financial stability but faces market volatility and regulatory pressures. IsoEnergy, in early exploration, has higher operational risk and weaker financial metrics, increasing investment risk despite lower debt.
Which Stock to Choose?
Centrus Energy Corp. (LEU) shows a favorable income evolution with a 78.8% revenue growth over 2020-2024 and a 34.56% net income increase. Financial ratios are mostly positive, highlighting a strong ROE at 45.35% and a solid current ratio of 2.93. Profitability is good with a 16.56% net margin, low debt at 14.36% debt-to-assets, and a very favorable rating of B. However, ROIC is below WACC, signaling value destruction.
IsoEnergy Ltd. (ISOU) demonstrates an unfavorable income trend, with zero revenue growth and a significant net income decline of 341.53% over five years. Financial ratios reflect challenges, including negative ROE (-13.9%) and net margin at 0%. Debt levels are low with a 9% debt-to-assets ratio, but profitability is negative and the rating is C-, indicating financial weakness. The company shows a slightly unfavorable moat despite improving ROIC.
For investors, LEU’s robust income growth and predominantly favorable financial ratios might appeal to those prioritizing quality and growth, despite concerns about value creation. Conversely, ISOU’s financial indicators and income statement suggest a riskier profile, possibly more suitable for risk-tolerant investors who focus on potential turnaround opportunities. The choice could depend heavily on the investor’s risk appetite and strategy focus.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Centrus Energy Corp. and IsoEnergy Ltd. to enhance your investment decisions:
