Better Nuclear Energy Stock: Cameco vs. Oklo

Cameco (NYSE: CCJ) and Oklo (NYSE: OKLO) represent two different ways to invest in the growing demand for nuclear energy. Cameco is one of the world's largest uranium miners, and Oklo develops modular microreactors for remote areas.

Over the past 12 months, Cameco's stock price rallied more than 80% as Oklo's stock price surged nearly 360%. Both stocks were lifted higher by strong tailwinds for the nuclear energy market, but should investors buy either of these stocks as the S&P 500 hovers near its all-time highs?

Image source: Getty Images.

Cameco's recent changes will stabilize its long-term growth

Cameco, which is based in Canada, mined 17% of the world's uranium through its mines and mills across Canada, the U.S., and Kazakhstan in 2024. That made it the second-largest uranium miner after Kazatomprom, Kazakhstan's national atomic company.

Yet Cameco's annual revenue was more than halved from 2011 to 2021. Its growth was derailed by the Fukushima nuclear disaster in 2011, the subsequent pullback in nuclear spending across the world, the COVID-19 pandemic, and the weak Canadian dollar. As uranium's spot prices collapsed, it idled its biggest mines and mills to stay solvent.

But from January 2021 to October 2025, uranium's spot price surged from $29.63 to $80. From 2021 to 2024, Cameco's annual revenue grew at a compound annual growth rate (CAGR) of 29% as its gross margin expanded from 0.1% to 25%.

It also turned profitable again in 2022. That acceleration was driven by a growing acceptance of nuclear energy as a long-term solution to the world's energy crisis, the secular expansion of the power-hungry cloud and artificial intelligence (AI) markets, military conflicts in uranium-rich regions, and the reopening of its mines and mills.

In late 2023, Cameco partnered with Brookfield Asset Management to acquire the nuclear power-plant designer and builder Westinghouse Electric. Its new 49% stake in Westinghouse should gradually reduce its long-term exposure to uranium's volatile price swings.

From 2024 to 2027, analysts expect Cameco's revenue to grow at a CAGR of 8% as its earnings per share (EPS) rises at a CAGR of 88%. Its stock isn't cheap at 60 times next year's earnings, but its dominance in the uranium-mining market might justify that higher valuation.

Oklo still has a lot to prove

When Oklo went public by merging with a special purpose acquisition company (SPAC) last May, it attracted a lot of attention for two reasons. First, its former CEO and chairman was Sam Altman, the CEO of OpenAI. Second, its microreactor technology seemed impressive.

Oklo's Aurora microreactor only generates 1.5 megawatt electrical (MWe) power, while a traditional nuclear reactor generates around 1,000 MWe of power. But the Aurora microreactors can be chained together in smaller modular deployments to generate 15 MWe to 100 MWe of power -- so they're better suited for building off-grid systems in remote areas.

The Aurora is also powered by metallic uranium fuel pellets, which are denser, more resistant to high temperatures, and cheaper to produce than traditional uranium dioxide fuel pellets. Those metallic uranium pellets can be reprocessed and recycled within a closed loop -- so the Aurora only needs to refuel every one or two decades. Traditional nuclear reactors using uranium dioxide pellets still need to be refueled every one to two years.

That technology sounds like a major leap forward for nuclear energy, but Oklo doesn't plan to deploy its first reactors until late 2027 or early 2028. The U.S. government doesn't expect its first reactor in Idaho to be fully operational until 2030. That's why Oklo isn't expected to generate any revenue until 2027 (at the earliest) as it racks up steep losses.

With a market cap of $16.6 billion, Oklo is still a highly speculative stock. The Nuclear Regulatory Commission (NRC) hasn't even approved the combined license for operating the company's upcoming reactors yet, and it could eventually face competition from Westinghouse, which plans to start testing its own eVinci microreactor in 2029.

The better nuclear stock: Cameco

Cameco is a much safer play on the booming nuclear-energy market than Oklo. It's a top uranium miner that's firmly profitable and has a wide moat. Plus, its investment in Westinghouse should reduce its long-term volatility.

Oklo might have a bright future, but investors won't know how sustainable its business model is until it deploys its first microreactors. A bit too much growth has also been baked into Oklo's high-flying shares, so investors should avoid it until a few more green flags appear.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Brookfield Asset Management. The Motley Fool recommends Cameco. The Motley Fool has a disclosure policy.