The shares of Ur-Energy Inc. have increased by more than 6.79% this year alone. The shares recently went down by -13.24% or -$0.11 and now trades at $0.73. The shares of Maxar Technologies Ltd. (NYSE:MAXR), has slumped by -40.24% year to date as of 08/07/2018. The shares currently trade at $38.44 and have been able to report a change of -21.50% over the past one week.
The stock of Ur-Energy Inc. and Maxar Technologies Ltd. were two of the most active stocks on Tuesday. Investors seem to be very interested in what happens to the stocks of these two companies but do investors favor one over the other? We will analyze the growth, profitability, risk, valuation, and insider trends of both companies and see which one investors prefer.Next 5Y EPS Growth: 35.00% versus 5.18%
When a company is able to grow consistently in terms of earnings at a high compound rate have the highest likelihood of creating value for its shareholders over time. Analysts have predicted that URG will grow it’s earning at a 35.00% annual rate in the next 5 years. This is in contrast to MAXR which will have a positive growth at a 5.18% annual rate. This means that the higher growth rate of URG implies a greater potential for capital appreciation over the years.Profitability and Returns
Growth alone cannot be used to see if the company will be valuable. Shareholders will be the losers if a company invest in ventures that aren’t profitable enough to support upbeat growth. In order for us to accurately measure profitability and return, we will be using the EBITDA margin and Return on Investment (ROI), which balances the difference in capital structure. URG has an EBITDA margin of 13.94%, this implies that the underlying business of URG is more profitable. These figures suggest that URG ventures generate a higher ROI than that of MAXR.Cash Flow
The value of a stock is ultimately determined by the amount of cash flow that the investors have available. Over the last 12 months, URG’s free cash flow per share is a negative -0.01, while that of MAXR is also a negative -1.74.Valuation
URG currently trades at a forward P/E of 91.25, a P/B of 2.21, and a P/S of 3.04 while MAXR trades at a forward P/E of 7.51, a P/B of 1.07, and a P/S of 0.77. This means that looking at the earnings, book values and sales basis, MAXR is the cheaper one. It is very obvious that earnings are the most important factors to investors, thus analysts are most likely to place their bet on the P/E.Analyst Price Targets and Opinions
The mistake some people make is that they think a cheap stock has more value to it. In order to know the value of a stock, there is need to compare its current price to its likely trading price in the future. The price of URG is currently at a -39.17% to its one-year price target of 1.20. Looking at its rival pricing, MAXR is at a -38.35% relative to its price target of 62.35.
When looking at the investment recommendation on say a scale of 1 to 5 (1 being a strong buy, 3 a hold, and 5 a sell), URG is given a 1.70 while 2.00 placed for MAXR. This means that analysts are more bullish on the outlook for MAXR stocks.Insider Activity and Investor Sentiment
Short interest or otherwise called the percentage of a stock’s tradable shares currently being shorted is another data that investors use to get a handle on sentiment. The short ratio for URG is 7.62 while that of MAXR is just 16.23. This means that analysts are more bullish on the forecast for URG stock.
The stock of Maxar Technologies Ltd. defeats that of Ur-Energy Inc. when the two are compared, with MAXR taking 5 out of the total factors that were been considered. MAXR happens to be more profitable, generates a higher ROI, has higher cash flow per share, higher liquidity and has a lower financial risk. When looking at the stock valuation, MAXR is the cheaper one on an earnings, book value and sales basis. Finally, the sentiment signal for MAXR is better on when it is viewed on short interest.