In the evolving landscape of energy, two companies stand out for their unique approaches: Exelon Corporation (EXC) and Centrus Energy Corp. (LEU). While Exelon focuses on regulated electric utility services, Centrus specializes in nuclear fuel supply and engineering solutions. Their overlapping interest in the nuclear sector and commitment to innovation make this comparison particularly relevant. Join me as we delve into their strategies and performance to determine which company presents the most compelling investment opportunity.
Table of contents
Company Overview
Exelon Corporation Overview
Exelon Corporation (ticker: EXC) is a leading utility services holding company based in Chicago, Illinois. Founded in 1999, Exelon operates in the energy generation, delivery, and marketing sectors across the United States and Canada. The company boasts a diverse portfolio that includes nuclear, fossil, wind, hydroelectric, biomass, and solar power facilities. With a market cap of approximately $47.6B, Exelon provides electricity and natural gas to a range of customers, including municipalities, cooperatives, and financial institutions. The company is committed to sustainability and innovation in energy solutions, positioning itself as a key player in the transition to a cleaner energy future.
Centrus Energy Corp. Overview
Centrus Energy Corp. (ticker: LEU), incorporated in 1998 and headquartered in Bethesda, Maryland, specializes in the supply of nuclear fuel and related services for the nuclear power industry. With a market cap of around $4.5B, Centrus operates primarily through two segments: Low-Enriched Uranium (LEU) and Technical Solutions. The LEU segment provides separative work units and natural uranium, while the Technical Solutions segment offers engineering and operational services. Centrus is pivotal in supporting the nuclear power sector, which is integral to achieving energy independence and reducing carbon emissions.
Key similarities and differences
Both Exelon and Centrus Energy operate within the energy sector but focus on different areas. Exelon primarily provides utility services and energy generation, while Centrus specializes in nuclear fuel supply and technical solutions. Their business models reflect distinct approaches to energy, with Exelon emphasizing a broad spectrum of energy sources and sustainability, whereas Centrus is focused on the nuclear fuel supply chain and engineering services.
Income Statement Comparison
Below is a comparison of the most recent income statements for Exelon Corporation (EXC) and Centrus Energy Corp. (LEU). This table provides a snapshot of key financial metrics.
| Metric | Exelon Corporation (EXC) | Centrus Energy Corp. (LEU) |
|---|---|---|
| Market Cap | 47.62B | 4.54B |
| Revenue | 23.03B | 442M |
| EBITDA | 8.18B | 86.5M |
| EBIT | 4.58B | 75.7M |
| Net Income | 2.46B | 73.2M |
| EPS | 2.45 | 4.49 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In the latest fiscal year, Exelon Corporation displayed steady revenue growth, increasing from 21.73B in 2023 to 23.03B in 2024, indicating a robust demand for its utility services. Net income also rose significantly from 2.33B to 2.46B, reflecting effective cost management and operational efficiency. In contrast, Centrus Energy’s revenue grew from 320M to 442M, demonstrating a strong upward trend; however, its net income saw only a slight increase, signaling potential challenges in managing expenses. Overall, Exelon shows stronger financial health, while Centrus is positioning for growth in a competitive sector.
Financial Ratios Comparison
Below is a comparative overview of the most recent financial ratios for Exelon Corporation (EXC) and Centrus Energy Corp. (LEU). This table includes key metrics that can help in evaluating the financial health and performance of both companies.
| Metric | Exelon Corporation (EXC) | Centrus Energy Corp. (LEU) |
|---|---|---|
| ROE | 9.14% | 45.35% |
| ROIC | 3.93% | 4.02% |
| P/E | 15.35 | 9.81 |
| P/B | 1.40 | 6.73 |
| Current Ratio | 0.87 | 2.93 |
| Quick Ratio | 0.78 | 2.46 |
| D/E | 1.73 | 0.97 |
| Debt-to-Assets | 43.28% | 14.36% |
| Interest Coverage | 2.26 | 17.78 |
| Asset Turnover | 0.21 | 0.40 |
| Fixed Asset Turnover | 0.29 | 47.02 |
| Payout Ratio | 61.95% | 0% |
| Dividend Yield | 4.04% | 0% |
Interpretation of Financial Ratios
Exelon Corporation shows a moderate return on equity (ROE) and a relatively high debt-to-equity ratio, indicating potential financial risk but reasonable management of returns. In contrast, Centrus Energy Corp. boasts a significantly higher ROE and impressive interest coverage, suggesting robust profitability and lower financial risk. However, the high price-to-book ratio and zero payout ratio for LEU may imply overvaluation or lack of shareholder returns. I recommend a careful assessment of these metrics before making investment decisions.
Dividend and Shareholder Returns
Exelon Corporation (EXC) maintains a robust dividend strategy, showing a payout ratio of approximately 62% and a dividend yield of 4.04%. This is supported by a consistent trend in dividends, although potential risks include the sustainability of these distributions amidst fluctuating cash flows. In contrast, Centrus Energy Corp. (LEU) does not pay dividends, prioritizing reinvestment for growth and R&D; however, it does engage in share buybacks. This approach may align with long-term shareholder value creation, provided it yields significant returns on investment. Overall, EXC’s dividends and LEU’s reinvestment strategy both offer different pathways to sustainable value.
Strategic Positioning
Exelon Corporation (EXC) holds a significant share in the regulated electric utility market, leveraging its diverse energy generation portfolio, which includes nuclear and renewable sources. With a market cap of $47.6B, it faces competitive pressure from emerging energy technologies and regulatory changes. In contrast, Centrus Energy Corp. (LEU), with a market cap of $4.5B, specializes in nuclear fuel supply and services, and while it benefits from rising demand for clean energy, it must navigate challenges related to uranium pricing and geopolitical factors.
Stock Comparison
In the past year, both Exelon Corporation (EXC) and Centrus Energy Corp. (LEU) have experienced significant price movements, reflecting distinct trading dynamics that may influence investor decisions.
Trend Analysis
For Exelon Corporation (EXC), the stock has shown a remarkable price change of 29.77% over the past year, indicating a bullish trend. The highest price reached during this period was $48.04, while the lowest was $33.84. This upward movement is characterized by acceleration, with a standard deviation of 3.94, suggesting a moderate level of volatility. Recently, from September 14, 2025, to November 30, 2025, the stock has increased by 8.62%, maintaining a positive trend slope and a standard deviation of 1.51.
In contrast, Centrus Energy Corp. (LEU) has posted an extraordinary price change of 417.26% over the same timeframe, also reflecting a bullish trend. The stock peaked at $383.00 and reached a low of $35.36. However, the trend shows deceleration, as indicated by a recent price change of 16.73% from September 14, 2025, to November 30, 2025, coupled with a negative trend slope of -2.4 and a high standard deviation of 55.23, pointing to increased volatility.
Both stocks display strong bullish characteristics, yet the notable acceleration in EXC against the deceleration in LEU presents a differentiated risk profile for potential investors.
Analyst Opinions
Recent analyst recommendations for Exelon Corporation (EXC) indicate a “Buy” rating, attributed to strong scores in discounted cash flow and return on assets, according to analysts. For Centrus Energy Corp. (LEU), the consensus is a “Hold” with a rating of B-, primarily due to concerns over its price-to-earnings and price-to-book ratios. Analysts emphasize the potential for growth in both companies, but caution investors to monitor debt levels closely. Overall, the consensus for the current year leans towards a “Buy” for EXC and a “Hold” for LEU.
Stock Grades
In the current market landscape, it’s essential to keep an eye on stock ratings to make informed investment decisions. Here are the latest grades for Exelon Corporation (EXC) and Centrus Energy Corp. (LEU):
Exelon Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Morgan Stanley | maintain | Equal Weight | 2025-10-22 |
| Keybanc | maintain | Underweight | 2025-10-15 |
| Jefferies | maintain | Buy | 2025-10-15 |
| Barclays | maintain | Overweight | 2025-10-14 |
| UBS | maintain | Neutral | 2025-10-10 |
| Morgan Stanley | maintain | Equal Weight | 2025-09-25 |
| Keybanc | maintain | Underweight | 2025-07-16 |
| UBS | maintain | Neutral | 2025-07-11 |
| UBS | maintain | Neutral | 2025-06-02 |
| Morgan Stanley | maintain | Equal Weight | 2025-05-22 |
Centrus Energy Corp. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| 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 |
| B. Riley Securities | maintain | Buy | 2025-06-23 |
| Evercore ISI Group | maintain | Outperform | 2025-06-18 |
| B. Riley Securities | maintain | Buy | 2024-10-30 |
Overall, the grades for Exelon Corporation indicate a stable outlook with many maintain actions, while Centrus Energy Corp. shows a mix of grades, with some recent downgrades and a majority of neutral ratings. This suggests a relatively cautious sentiment in the market for both companies, and I urge investors to consider these ratings in the context of their overall investment strategy.
Target Prices
The consensus target prices from analysts for the selected companies indicate strong potential upside.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Exelon Corporation (EXC) | 57 | 42 | 51.67 |
| Centrus Energy Corp. (LEU) | 275 | 245 | 257.33 |
For Exelon Corporation (EXC), the current price of 47.12 suggests that analysts expect significant growth potential, with a consensus target price of 51.67. Similarly, Centrus Energy Corp. (LEU) is currently at 259.3, and the consensus target price of 257.33 indicates a slight downside risk, reflecting cautious sentiment among analysts.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of Exelon Corporation (EXC) and Centrus Energy Corp. (LEU).
| Criterion | Exelon Corporation (EXC) | Centrus Energy Corp. (LEU) |
|---|---|---|
| Diversification | High | Moderate |
| Profitability | Moderate (10.7% net margin) | High (26.4% net margin) |
| Innovation | Moderate | High |
| Global presence | Limited (US and Canada) | Strong (US, Japan, Belgium) |
| Market Share | Significant | Niche |
| Debt level | High (1.73 debt-to-equity) | Moderate (0.97 debt-to-equity) |
Key takeaways from this analysis indicate that while Centrus Energy displays higher profitability and innovation, Exelon offers a more diverse portfolio. However, Exelon’s high debt level may pose risks for investors.
Risk Analysis
The table below outlines the key risks associated with Exelon Corporation (EXC) and Centrus Energy Corp. (LEU).
| Metric | Exelon Corporation | Centrus Energy Corp. |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | High | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Moderate | Low |
| Geopolitical Risk | Low | High |
In summary, both companies face significant regulatory and operational risks, with Centrus Energy Corp. being particularly vulnerable to market and geopolitical factors due to its involvement in the nuclear industry. Recent challenges in energy regulation and fluctuating uranium prices could impact performance significantly.
Which one to choose?
When comparing Exelon Corporation (EXC) and Centrus Energy Corp. (LEU), both companies present unique opportunities. EXC showcases a strong revenue growth trend, with a market cap of 38B and a solid operating income of 4.3B, reflected in its B rating from analysts. Its price-to-earnings (P/E) ratio is a reasonable 15.35, suggesting fair valuation, while its stock trend is bullish with a 29.77% increase over the past year.
Conversely, LEU has experienced an impressive price increase of 417.26%, but its high volatility (standard deviation of 91.15) and B- rating indicate greater risk. With a P/E ratio of 9.81, it appears more attractively priced but comes with heightened uncertainty.
For growth-oriented investors, LEU may offer substantial upside potential, while those valuing stability may prefer EXC. Notably, both companies face risks related to competition and market fluctuations.
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 Exelon Corporation and Centrus Energy Corp. to enhance your investment decisions:
