FNV vs. NGT, AEM, ABX, WPM, K, TNX, PAAS, AGI, YRI, and WFT
Should you be buying Franco-Nevada stock or one of its competitors? The main competitors of Franco-Nevada include Newmont (NGT), Agnico Eagle Mines (AEM), Barrick Gold (ABX), Wheaton Precious Metals (WPM), Kinross Gold (K), TRX Gold (TNX), Pan American Silver (PAAS), Alamos Gold (AGI), Yamana Gold (YRI), and West Fraser Timber Co. Ltd. (WFT.TO) (WFT). These companies are all part of the "gold" industry.
Newmont (TSE:NGT) and Franco-Nevada (TSE:FNV) are both large-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability, analyst recommendations, media sentiment and community ranking.
In the previous week, Newmont had 4 more articles in the media than Franco-Nevada. MarketBeat recorded 9 mentions for Newmont and 5 mentions for Franco-Nevada. Newmont's average media sentiment score of 0.37 beat Franco-Nevada's score of 0.05 indicating that Franco-Nevada is being referred to more favorably in the news media.
Newmont presently has a consensus price target of C$59.00, indicating a potential upside of 2.86%. Franco-Nevada has a consensus price target of C$191.17, indicating a potential upside of 12.42%. Given Newmont's stronger consensus rating and higher possible upside, analysts plainly believe Franco-Nevada is more favorable than Newmont.
Franco-Nevada received 276 more outperform votes than Newmont when rated by MarketBeat users. However, 64.00% of users gave Newmont an outperform vote while only 47.83% of users gave Franco-Nevada an outperform vote.
Franco-Nevada has lower revenue, but higher earnings than Newmont. Franco-Nevada is trading at a lower price-to-earnings ratio than Newmont, indicating that it is currently the more affordable of the two stocks.
Newmont has a net margin of -20.33% compared to Newmont's net margin of -39.96%. Newmont's return on equity of -7.75% beat Franco-Nevada's return on equity.
Newmont has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Franco-Nevada has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.
71.0% of Newmont shares are held by institutional investors. Comparatively, 82.0% of Franco-Nevada shares are held by institutional investors. 0.1% of Newmont shares are held by insiders. Comparatively, 0.7% of Franco-Nevada shares are held by 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.
Newmont pays an annual dividend of C$1.37 per share and has a dividend yield of 2.4%. Franco-Nevada pays an annual dividend of C$1.98 per share and has a dividend yield of 1.2%. Newmont pays out -30.6% of its earnings in the form of a dividend. Franco-Nevada pays out -57.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Summary
Franco-Nevada beats Newmont on 13 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding FNV and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of TSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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