Head to Head Review: Franco-Nevada (NYSE:FNV) and Solgold (OTCMKTS:SLGGF)

Franco-Nevada (NYSE:FNV) and Solgold (OTCMKTS:SLGGF) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.

Volatility and Risk

Franco-Nevada has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500. Comparatively, Solgold has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.

Valuation & Earnings

This table compares Franco-Nevada and Solgold”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franco-Nevada	$1.33 billion	31.85	$552.10 million	$4.07	54.19
Solgold	N/A	N/A	-$36.25 million	N/A	N/A

Franco-Nevada has higher revenue and earnings than Solgold.

Profitability

This table compares Franco-Nevada and Solgold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Franco-Nevada	58.82%	12.56%	11.88%
Solgold	N/A	-14.84%	-7.44%

Analyst Ratings

This is a summary of current ratings for Franco-Nevada and Solgold, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franco-Nevada	0	7	7	0	2.50
Solgold	0	0	0	0	0.00

Franco-Nevada currently has a consensus price target of $194.57, suggesting a potential downside of 11.78%. Given Franco-Nevada’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Franco-Nevada is more favorable than Solgold.

Insider & Institutional Ownership

77.1% of Franco-Nevada shares are owned by institutional investors. 0.7% of Franco-Nevada shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Franco-Nevada beats Solgold on 10 of the 11 factors compared between the two stocks.

About Franco-Nevada

Franco-Nevada Corporation operates as a gold-focused royalty and streaming company in South America, Central America, Mexico, the United States, Canada, and internationally. It operates through Mining and Energy segments. The company manages its portfolio with a focus on precious metals, such as gold, silver, and platinum group metals; and engages in the sale of crude oil, natural gas, and natural gas liquids through a third-party marketing agent. Franco-Nevada Corporation was founded in 1986 and is headquartered in Toronto, Canada.

About Solgold

SolGold Plc, a mineral exploration and development company, explores for and develops mineral properties in Ecuador, Australia, Chile, and Solomon Islands. The company primarily explores for copper, gold, silver, and molybdenum deposits. Its flagship project is the Cascabel Project that covers an area of approximately 50 square kilometers located in Imbabura province, Northern Ecuador. The company was formerly known as Solomon Gold plc and changed its name to SolGold plc in May 2012. SolGold Plc was incorporated in 2005 and is headquartered in Brisbane, Australia.