In the dynamic world of uranium investment, Ur-Energy Inc. (URG) and Denison Mines Corp. (DNN) stand out as two compelling players. Both companies are entrenched in the uranium industry, with overlapping market interests and innovative strategies aimed at harnessing the growing demand for nuclear energy. As I delve into their operations, market positions, and future prospects, I will help you determine which of these companies presents the most intriguing opportunity for your investment portfolio.
Table of contents
Company Overview
Ur-Energy Inc. Overview
Ur-Energy Inc. is focused on the acquisition, exploration, and operation of uranium mineral properties across the United States. Established in 2004 and headquartered in Littleton, Colorado, the company aims to advance its flagship Lost Creek project, which encompasses approximately 48,000 acres in Wyoming’s Great Divide Basin. Ur-Energy is positioned within the energy sector, specifically targeting the growing demand for uranium as a clean energy source. With a market capitalization of approximately $456M, the company operates with a commitment to sustainable mining practices, although it currently does not distribute dividends to shareholders.
Denison Mines Corp. Overview
Denison Mines Corp. is a Canadian company specializing in the development and investment of uranium properties, primarily in the Athabasca Basin region of Saskatchewan. Founded in 1997 and based in Toronto, Denison’s flagship project is the Wheeler River project, where it holds a 95% interest. With a market capitalization around $2.2B, Denison has positioned itself as a leader in the uranium sector, capitalizing on the increasing global interest in nuclear energy. Similar to Ur-Energy, Denison does not currently pay dividends, reflecting a focus on reinvesting in growth initiatives.
Key similarities between Ur-Energy and Denison Mines lie in their focus on uranium properties and the sustainable management of resources. However, they differ in their geographical focus and scale, with Ur-Energy primarily operating in the U.S. and Denison firmly established in Canada, as well as Denison’s larger market capitalization and project portfolio.
Income Statement Comparison
The following table compares the most recent income statements of Ur-Energy Inc. (URG) and Denison Mines Corp. (DNN) for the fiscal year 2024.
| Metric | Ur-Energy Inc. (URG) | Denison Mines Corp. (DNN) |
|---|---|---|
| Revenue | 33.7M | 4.0M |
| EBITDA | -59.9M | -81.8M |
| EBIT | -63.1M | -91.7M |
| Net Income | -53.2M | -91.1M |
| EPS | -0.17 | -0.10 |
Interpretation of Income Statement
In 2024, Ur-Energy reported a revenue of 33.7M, up significantly from 17.7M in 2023, indicating a positive trend despite still posting a net loss of 53.2M. Denison Mines, conversely, reported a decrease in revenue to 4.0M from 1.9M in the previous year, but managed a net income turnaround to a profit of 90.4M. Both companies exhibited negative EBITDA, highlighting ongoing operational challenges. The contrasting trends suggest Ur-Energy is improving its revenue generation, while Denison’s profitability is impacted by fluctuating operational costs, indicating differing recovery paths in the mining sector.
Financial Ratios Comparison
The following table provides a comparative overview of the latest financial ratios for Ur-Energy Inc. (URG) and Denison Mines Corp. (DNN) as of the end of 2024.
| Metric | Ur-Energy Inc. (URG) | Denison Mines Corp. (DNN) |
|---|---|---|
| ROE | -40.05% | -16.15% |
| ROIC | -36.01% | -10.03% |
| P/E | -6.87 | 21.99 |
| P/B | 2.75 | 4.09 |
| Current Ratio | 5.99 | 3.65 |
| Quick Ratio | 4.91 | 3.54 |
| D/E | 0.01 | 0.00 |
| Debt-to-Assets | 0.01 | 0.00 |
| Interest Coverage | 0 | 0 |
| Asset Turnover | 0.17 | 0.01 |
| Fixed Asset Turnover | 0 | 0.02 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0% | 0% |
Interpretation of Financial Ratios
Both companies show negative returns on equity (ROE) and invested capital (ROIC), indicating poor profitability and operational efficiency. Ur-Energy has a stronger current and quick ratio, suggesting better short-term liquidity compared to Denison Mines. However, a high debt-to-assets ratio is concerning for both firms. Overall, these ratios highlight significant financial challenges, warranting cautious consideration for potential investors.
Dividend and Shareholder Returns
Both Ur-Energy Inc. (URG) and Denison Mines Corp. (DNN) do not pay dividends, with URG maintaining a consistent dividend payout ratio of 0. This reflects their focus on reinvestment strategies, likely prioritizing R&D and growth initiatives over immediate shareholder returns. Furthermore, both companies engage in share buybacks, which may help support share prices. However, given their significant net losses and reliance on cash flow, the long-term sustainability of their approaches warrants cautious evaluation.
Strategic Positioning
In the uranium market, Denison Mines Corp. (DNN) holds a significant edge with a market cap of 2.2B, positioning it as a major player compared to Ur-Energy Inc. (URG), which has a market cap of 456M. DNN’s flagship Wheeler River project enhances its competitive advantage amid rising demand for uranium, while URG’s reliance on its Lost Creek project presents potential vulnerabilities. Both companies face competitive pressure from technological advancements and market volatility, necessitating robust risk management strategies.
Stock Comparison
In this section, I will analyze the stock price movements of Ur-Energy Inc. (URG) and Denison Mines Corp. (DNN) over the past year, highlighting significant trends and trading dynamics.
Trend Analysis
For Ur-Energy Inc. (URG), the stock has experienced a percentage change of -14.73% over the past year, indicating a bearish trend. The highest price reached was 2.01, while the lowest price was 0.6. The trend shows deceleration, with a standard deviation of 0.33 suggesting some volatility in trading behavior.
Conversely, Denison Mines Corp. (DNN) has seen a robust percentage change of 47.4% over the same period, marking a clear bullish trend. The stock peaked at 3.17 and dipped to a low of 1.19. Despite the positive trajectory, the trend shows deceleration as well, with a standard deviation of 0.39 indicating some volatility in its stock movement.
In summary, URG’s performance demonstrates a negative trajectory, while DNN showcases significant growth, albeit with a slowing pace.
Analyst Opinions
Recent analyst recommendations for Ur-Energy Inc. (URG) and Denison Mines Corp. (DNN) indicate a cautious stance, with both receiving a “C-” rating. Analysts highlight concerns such as low return on equity and high debt-to-equity ratios as significant risks. Additionally, both companies scored poorly on discounted cash flow and price-to-earnings metrics. As of 2025, the consensus leans towards a hold position for both stocks, reflecting uncertainty in their growth potential and overall financial health.
Stock Grades
I have analyzed the stock grades for Ur-Energy Inc. (URG) and Denison Mines Corp. (DNN) based on recent data from reliable grading companies.
Ur-Energy Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| HC Wainwright & Co. | Maintain | Buy | 2025-11-04 |
| B. Riley Securities | Maintain | Buy | 2025-09-25 |
| Roth Capital | Maintain | Buy | 2025-09-23 |
| HC Wainwright & Co. | Maintain | Buy | 2025-04-15 |
| HC Wainwright & Co. | Maintain | Buy | 2025-02-11 |
| Roth MKM | Maintain | Buy | 2024-10-23 |
| B. Riley Securities | Maintain | Buy | 2024-08-20 |
| HC Wainwright & Co. | Maintain | Buy | 2024-08-14 |
| HC Wainwright & Co. | Maintain | Buy | 2024-07-17 |
| Roth MKM | Maintain | Buy | 2024-05-09 |
Denison Mines Corp. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Roth MKM | Maintain | Buy | 2024-10-23 |
| TD Securities | Maintain | Speculative Buy | 2023-06-27 |
| Raymond James | Maintain | Outperform | 2023-06-27 |
| TD Securities | Maintain | Speculative Buy | 2023-06-26 |
| Raymond James | Maintain | Outperform | 2023-06-26 |
| Credit Suisse | Downgrade | Underperform | 2017-07-18 |
| Credit Suisse | Downgrade | Underperform | 2017-07-17 |
| Roth Capital | Maintain | Buy | 2016-02-10 |
| Credit Suisse | Upgrade | Neutral | 2014-04-01 |
| Credit Suisse | Upgrade | Neutral | 2014-03-31 |
Overall, both companies maintain strong grades, with Ur-Energy consistently rated as “Buy” across multiple analysts, indicating a stable outlook. Denison Mines shows a mix of ratings, maintaining a “Buy” but also reflecting some historical downgrades, suggesting a need for cautious monitoring.
Target Prices
The target price consensus for Ur-Energy Inc. (URG) and Denison Mines Corp. (DNN) indicates positive expectations from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Ur-Energy Inc. | 2.6 | 2.15 | 2.38 |
| Denison Mines Corp. | 2.6 | 2.6 | 2.6 |
For Ur-Energy Inc., the consensus target price of 2.38 suggests a significant upside potential from the current price of 1.25. Denison Mines Corp.’s target consensus matches its current price of 2.4575, indicating a more stable outlook.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of Ur-Energy Inc. (URG) and Denison Mines Corp. (DNN) based on recent performance metrics and business characteristics.
| Criterion | Ur-Energy Inc. (URG) | Denison Mines Corp. (DNN) |
|---|---|---|
| Diversification | Limited (U.S. focused) | Moderate (Canada-focused) |
| Profitability | Negative margins | Positive margins |
| Innovation | Low | High |
| Global presence | Limited | Strong |
| Market Share | Small | Growing |
| Debt level | Very low | None |
Key takeaways indicate that while Denison Mines Corp. shows stronger profitability and a better innovation profile, Ur-Energy has significantly lower debt levels, which can be advantageous in times of financial uncertainty.
Risk Analysis
In the following table, I present the main risks associated with Ur-Energy Inc. and Denison Mines Corp., two players in the uranium sector.
| Metric | Ur-Energy Inc. (URG) | Denison Mines Corp. (DNN) |
|---|---|---|
| Market Risk | High | High |
| Regulatory Risk | Moderate | Moderate |
| Operational Risk | High | High |
| Environmental Risk | Moderate | Moderate |
| Geopolitical Risk | High | Moderate |
Both companies face significant market and operational risks, particularly due to volatility in uranium prices and regulatory scrutiny. Recent geopolitical tensions have also increased the uncertainty surrounding their operations.
Which one to choose?
When comparing Ur-Energy Inc. (URG) and Denison Mines Corp. (DNN), both companies exhibit significant financial challenges, yet their trajectories differ. URG shows a bearish trend with a price drop of 14.73% recently, coupled with a C- rating, indicating poor profitability metrics such as negative profit margins and significant expenses. Conversely, DNN has experienced a bullish trend, gaining 47.4% in value, and also holds a C- rating. However, it has shown improvements in profitability metrics, notably a positive net income in the latest fiscal year.
For growth-focused investors, DNN may represent a more favorable option, given its recent performance and upward trend. In contrast, conservative investors seeking stability might still hesitate due to the inherent risks both companies face, such as 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 Ur-Energy Inc. and Denison Mines Corp. to enhance your investment decisions:
