Sociedad Química y Minera de Chile (NYSE:SQM) versus Energy Fuels (NYSE:UUUU) Financial Analysis

Energy Fuels (NYSE:UUUU) and Sociedad Química y Minera de Chile (NYSE:SQM) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Insider & Institutional Ownership

48.2% of Energy Fuels shares are owned by institutional investors. Comparatively, 12.4% of Sociedad Química y Minera de Chile shares are owned by institutional investors. 1.9% of Energy Fuels shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Energy Fuels has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500. Comparatively, Sociedad Química y Minera de Chile has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Energy Fuels and Sociedad Química y Minera de Chile, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Energy Fuels	0	2	2	0	2.50
Sociedad Química y Minera de Chile	1	3	4	0	2.38

Energy Fuels presently has a consensus target price of $8.50, indicating a potential upside of 34.71%. Sociedad Química y Minera de Chile has a consensus target price of $48.69, indicating a potential upside of 32.77%. Given Energy Fuels’ stronger consensus rating and higher possible upside, analysts clearly believe Energy Fuels is more favorable than Sociedad Química y Minera de Chile.

Profitability

This table compares Energy Fuels and Sociedad Química y Minera de Chile’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Energy Fuels	-90.40%	-9.16%	-8.67%
Sociedad Química y Minera de Chile	0.48%	23.15%	10.43%

Valuation and Earnings

This table compares Energy Fuels and Sociedad Química y Minera de Chile”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Energy Fuels	$37.93 million	32.31	$99.86 million	($0.22)	-28.68
Sociedad Química y Minera de Chile	$7.47 billion	1.40	$923.19 million	$0.11	333.36

Sociedad Química y Minera de Chile has higher revenue and earnings than Energy Fuels. Energy Fuels is trading at a lower price-to-earnings ratio than Sociedad Química y Minera de Chile, indicating that it is currently the more affordable of the two stocks.

Summary

Sociedad Química y Minera de Chile beats Energy Fuels on 8 of the 14 factors compared between the two stocks.

About Energy Fuels

Energy Fuels Inc., together with its subsidiaries, engages in the extraction, recovery, recycling, exploration, permitting, evaluation, and sale of uranium mineral properties in the United States. The company produces and sells vanadium pentoxide, rare earth elements, and heavy mineral sands, such as ilmenite, rutile, zircon, and monazite. The company was formerly known as Volcanic Metals Exploration Inc. and changed its name to Energy Fuels Inc. in May 2006. Energy Fuels Inc. was incorporated in 1987 and is headquartered in Lakewood, Colorado.

About Sociedad Química y Minera de Chile

Sociedad Química y Minera de Chile S.A. operates as a mining company worldwide. The company offers specialty plant nutrients, including sodium potassium nitrate, specialty blends, and other specialty fertilizers under Ultrasol, Qrop, Speedfol, Allganic, Ultrasoline, ProP, and Prohydric brands. It also provides iodine and its derivatives for use in medical, agricultural, industrial, and human and animal nutrition products comprising x-ray contrast media, biocides, antiseptics and disinfectants, pharmaceutical intermediates, polarizing films for LCD and LED screens, chemicals, organic compounds, and pigments, as well as added to edible salt to prevent iodine deficiency disorders. In addition, the company produces lithium carbonate and lithium hydroxide which are used in the production of cathode material for secondary batteries; lithium chloride; and basic lithium chemicals and lithium derivatives used in lubricating greases for heat-resistant glass, chips for the ceramic and glazing industry, and air conditioning chemicals, as well as other pharmaceutical syntheses and metal alloys. Further, it produces potassium sulfate; and potassium chloride which is used as a fertilizer for the application of potassium to different crops. Additionally, the company produces and markets industrial chemicals, such as sodium nitrate mainly used in the production of glass and explosives, metal processing and recycling, and production of insulating materials and adhesives; potassium nitrate used as a raw material to produce frits and special glass, as well as in the enamel, metal treatment, and pyrotechnic sectors; solar salts used as a thermal storage medium in solar power generation plants; and potassium chloride as an additive in oil drilling and food processing sectors. Furthermore, it is involved in the commercialization of third-party fertilizers; and exploration of copper, gold, and silver deposits. The company was founded in 1926 and is headquartered in Santiago, Chile.