Energy Fuels vs. Uranium Energy: Which Uranium Stock Has More Upside?

Energy Fuels UUUU and Uranium Energy UEC are U.S.-based uranium companies aiming to capitalize on the increasing demand for uranium driven by the global shift toward nuclear energy as a clean power source.  UUUU, with a market capitalization of $4.8 billion, is a leading U.S. producer of natural uranium concentrate and an emerging rare earth elements (REEs) player.  Uranium Energy, valued at $7.2 billion, recently restarted production at its Wyoming hub and spoke In-Situ Recovery (“ISR”) platform.Global interest in nuclear power is accelerating. India aims to boost nuclear capacity to at least 100 GW by 2047, while the United States plans to quadruple its nuclear capacity to 400 GW by 2050. The U.S. and U.K. governments recently signed the Technology Prosperity Deal, which seeks to accelerate reactor approvals and aid the United Kingdom in achieving full independence from Russian nuclear fuel by the end of 2028.Given uranium’s vital role in nuclear energy, these initiatives are expected to support sustained demand and prices. For investors considering this sector, we analyze and compare the fundamentals, growth prospects and risks of UUUU and UEC to determine which stock offers the stronger investment case.The Case for Energy FuelsEnergy Fuels has produced two-thirds of all uranium in the United States since 2017, and continues to ramp up production further, backed by its debt-free balance sheet. Taking current production levels and its development pipeline into account, the company has the potential to produce 4-6 million pounds of uranium per year.In the second quarter of 2025, the company mined ore containing approximately 665,000 pounds of uranium from the Pinyon Plain, La Sal and Pandora mines. The Pinyon Plain mine alone yielded 635,000 pounds of uranium, attributed to its exceptional ore grades. The mine’s performance indicates that it is set to be the highest-grade uranium deposit mined in U.S. history. It holds considerable exploration upside, with Energy Fuels currently extracting ore from only about 25% of the vertical extent of the target zone.Energy Fuels’ revenues plunged 52% year over year to $4.2 million in the second quarter due to lower uranium sales volumes resulting from contract timing and the decision to retain inventory amid lower uranium prices. The company also recorded $0.28 million in heavy mineral sands revenues from the sale of 202 tons of rutile.Lower revenues combined with exploration, development and processing expenses, as well as selling, general and administration expenses, led to a loss of 10 cents per share in the quarter, wider than the four-cent loss reported in the year-ago quarter.Backed by its debt-free balance sheet, Energy Fuels is ramping up uranium production while developing significant REE capabilities. Its Donald Project in Australia could start production by the end of 2027. It is one of the richest deposits of heavy rare earth elements (HREE”. Also, its Toliara Project in Madagascar and the Bahia Project in Brazil contain significant quantities of light and heavy REE oxides, which can be supplied to U.S. and European manufacturers.The company recently announced that its high-purity NdPr oxide has been manufactured into commercial-scale rare-earth permanent magnets (REPMs) and approved for use in high-temperature drive unit motors that are installed in EV and hybrid vehicles.   UUUU is targeting to deliver the first samples of high-purity terbium (Tb) oxide in the fourth quarter of 2025. UUUU plans to construct and commission commercial-scale Dy, Tb and other "heavy" REE separation capacity at its White Mesa Mill, which could start producing in the fourth quarter of 2026.The Case for Uranium EnergyUEC is advancing its next generation of low-cost, in-situ recovery (ISR) uranium mining projects. The ISR mining process has an edge over conventional mining methods as it requires lower capital and operating expenditures with a shorter lead time to extraction and a reduced impact on the environment. Fiscal 2025 (ended July 31, 2025) marked a significant milestone with Uranium Energy transitioning from developer to producer. It successfully restarted operations at the Christensen Ranch ISR Mine in Wyoming’s Powder River Basin with initial production at around 130,000 pounds of precipitated uranium and dried and drummed concentrate. The ramp-up phase will continue while new production areas are being constructed in 2025 and 2026. The Burke Hollow project remains on track with an expected start-up in December 2025, strengthening its production profile. Uranium Energy also acquired Rio Tinto’s Sweetwater Complex, adding roughly 175 million pounds of historic resources and establishing its third U.S. hub-and-spoke production platform. This acquisition lifted UEC’s total licensed annual production capacity to 12.1 million pounds of uranium, the largest in the United States.The company also launched United States Uranium Refining & Conversion Corp. to position itself as the only vertically integrated U.S. company with uranium mining, processing and planned refining and conversion capabilities.The company ended fiscal 2025 with $321 million in cash, inventory and equities at market prices and no debt.Uranium Energy reported fiscal 2025 revenues of $66.84 million, a substantial increase from $0.2 million in the prior fiscal year. However, this jump reflected UEC’s decision not to sell any of its purchased uranium inventory in fiscal 2024, rather than an operational or price impact. In fiscal 2024, UEC’s revenues reflected toll processing services, which have been discontinued. Operating costs surged 104% to $66 million in fiscal 2025. This was driven by higher development spending on the Burke Hollow Project and the Christensen Ranch Mine, as well as production readiness expenditures related to the Christensen Ranch Mine, Irigaray Plant and Palangana Mine. General and administrative expenses were also higher, due to an increase in salaries, wages and management fees due to personnel hires and adjustments for inflation.  Adjusted loss in fiscal 2025 was 17 cents compared with the loss of eight cents per share in the last fiscal.How do Estimates Compare for UUUU & UEC?The Zacks Consensus Estimate for Energy Fuels’ fiscal 2025 revenues is $40.8 million suggesting a year-over-year decline of 47.8%. The estimate for earnings is at a loss of 33 cents per share, wider than last year’s loss of 28 cents per share. The estimates for 2026 show a major improvement with revenues of $133.55 million, depicting a year-over-year improvement of 227.3%. The estimate for earnings is seven cents per share, marking the first year of profitability for the company.The Zacks Consensus Estimate for Uranium Energy’s fiscal 2026 revenues is $78.9 million, implying an 18% improvement from the prior fiscal. The company is, however, anticipated to report a loss of nine cents per share in fiscal 2026, narrower than the loss of 17 cents in fiscal 2025.For 2026, the estimate for Energy Fuels has moved up, while Uranium Energy has experienced a downward revision.  UUUU & UEC: Price Performance & ValuationEnergy Fuels' stock has gained 209.3% in the past year compared with Uranium Energy’s 69.8% rise.Image Source: Zacks Investment ResearchEnergy Fuels is currently trading at a forward 12-month price-to-sales ratio of 41.11X. Meanwhile, Uranium Energy is trading way higher at a forward 12-month price-to-sales ratio of 75.91X.Image Source: Zacks Investment ResearchEnergy Fuels or Uranium Energy: Which Stock is the Better Buy?Energy Fuels offers a unique dual exposure to uranium and rare earth elements, providing leverage to two fast-growing strategic markets. With a cheaper valuation, rising analyst estimates, a clear path to profitability by 2026 and an established production profile, UUUU stands out as the superior long-term play. UEC has seen downward estimate revisions and is expected to incur a loss in 2026 due to higher operating costs. Considering these factors, it will be wise to steer clear of UEC stock as of now, and UUUU stands out as a better investment choice. UUUU currently carries a Zacks Rank #2 (Buy), while UEC has a Zacks Rank #5 (Strong Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Energy Fuels Inc (UUUU): Free Stock Analysis Report Uranium Energy Corp. (UEC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks