enCore Energy (NASDAQ:EU) & IperionX (NASDAQ:IPX) Critical Review

enCore Energy (NASDAQ:EU) and IperionX (NASDAQ:IPX) are both small-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Profitability

This table compares enCore Energy and IperionX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
enCore Energy	N/A	-6.37%	-5.46%
IperionX	N/A	N/A	N/A

Institutional & Insider Ownership

20.9% of enCore Energy shares are owned by institutional investors. Comparatively, 2.8% of IperionX shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for enCore Energy and IperionX, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
enCore Energy	0	0	2	0	3.00
IperionX	0	0	0	1	4.00

enCore Energy currently has a consensus price target of $6.75, suggesting a potential upside of 52.03%. IperionX has a consensus price target of $20.00, suggesting a potential upside of 34.23%. Given enCore Energy’s higher probable upside, equities analysts clearly believe enCore Energy is more favorable than IperionX.

Valuation and Earnings

This table compares enCore Energy and IperionX’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
enCore Energy	$30.39 million	26.94	-$22.39 million	($0.13)	-34.15
IperionX	N/A	N/A	-$17.44 million	N/A	N/A

IperionX has lower revenue, but higher earnings than enCore Energy.

Volatility and Risk

enCore Energy has a beta of -0.02, indicating that its share price is 102% less volatile than the S&P 500. Comparatively, IperionX has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500.

Summary

IperionX beats enCore Energy on 6 of the 10 factors compared between the two stocks.

About enCore Energy

enCore Energy Corp. engages in the acquisition, exploration, and development of uranium resource properties in the United States. It holds a 100% interest in Crownpoint and Hosta Butte uranium project area covers 3,020 acres located in the Grants Uranium Belt, New Mexico. The company also holds interest in the Marquez-Juan Tafoya property comprises 14,582 acres located in McKinley and Sandoval counties of New Mexico; and the Nose Rock project comprising 42 owned unpatented lode mining claims comprising approximately 800 acres located in McKinley County, New Mexico. In addition, it holds interest in the White Canyon District and Utah property package, including the Geitus, Blue Jay, Marcy Look, and Cedar Mountain projects located to the northwest of the White Mesa Mill at Blanding County, Utah. Further, the company holds a 100% interest in Dewey Burdock project comprises approximately 12,613 surface acres and 16,962 net mineral acres located in South Dakota; Gas Hills project consists of approximately 1,280 surface acres and 12,960 net mineral acres of unpatented lode mining claims located in Wyoming; and West Largo project consist of approximately 3,840 acres located in McKinley County, New Mexico. Additionally, it holds a 100% interest in Ambrosia Lake – Treeline property consists of deeded mineral rights totaling 24,555 acres and unpatented mining claims covering approximately 1,700 acres; and Checkerboard mineral rights covering a land position of approximately 300,000 acres located in the Grants Uranium District. The company was formerly known as Wolfpack Gold Corp. and changed its name to enCore Energy Corp. in August 2014. enCore Energy Corp. is headquartered in Corpus Christi, Texas.

About IperionX

IperionX’s mission is to be the leading developer of low carbon, sustainable, critical material supply chains focused on advanced industries including space, aerospace, electric vehicles and 3D printing. IperionX’s breakthrough titanium technologies have demonstrated the potential to produce titanium products that are sustainable, 100% recyclable, have low carbon intensity and to do so at product qualities that meet or exceed current industry standards. The Company also holds a 100% interest in the Titan Project, covering approximately 11,100 acres of titanium, rare earth minerals, high grade silica sand and zircon rich mineral sands properties in Tennessee.