FNV vs. NEM, AEM, GOLD, WPM, GFI, AU, KGC, PAAS, AGI, and HMY
Should you be buying Franco-Nevada stock or one of its competitors? The main competitors of Franco-Nevada include Newmont (NEM), Agnico Eagle Mines (AEM), Barrick Gold (GOLD), Wheaton Precious Metals (WPM), Gold Fields (GFI), AngloGold Ashanti (AU), Kinross Gold (KGC), Pan American Silver (PAAS), Alamos Gold (AGI), and Harmony Gold Mining (HMY). These companies are all part of the "gold & silver ores" industry.
Newmont (NYSE:NEM) and Franco-Nevada (NYSE: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 valuation, dividends, earnings, media sentiment, risk, institutional ownership, profitability, community ranking and analyst recommendations.
Newmont received 512 more outperform votes than Franco-Nevada when rated by MarketBeat users. Likewise, 63.28% of users gave Newmont an outperform vote while only 55.15% of users gave Franco-Nevada an outperform vote.
68.8% of Newmont shares are owned by institutional investors. Comparatively, 77.1% of Franco-Nevada shares are owned by institutional investors. 0.1% of Newmont shares are owned by insiders. Comparatively, 0.7% of Franco-Nevada shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Newmont has a net margin of -20.19% compared to Newmont's net margin of -39.88%. Newmont's return on equity of 10.81% beat Franco-Nevada's return on equity.
Newmont has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, Franco-Nevada has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.
Newmont currently has a consensus price target of $48.36, indicating a potential upside of 14.05%. Franco-Nevada has a consensus price target of $148.70, indicating a potential upside of 19.03%. Given Newmont's higher possible upside, analysts clearly believe Franco-Nevada is more favorable than Newmont.
In the previous week, Newmont had 4 more articles in the media than Franco-Nevada. MarketBeat recorded 15 mentions for Newmont and 11 mentions for Franco-Nevada. Newmont's average media sentiment score of 1.07 beat Franco-Nevada's score of 0.52 indicating that Franco-Nevada is being referred to more favorably in the news media.
Newmont pays an annual dividend of $1.00 per share and has a dividend yield of 2.4%. Franco-Nevada pays an annual dividend of $1.43 per share and has a dividend yield of 1.1%. Newmont pays out -37.5% of its earnings in the form of a dividend. Franco-Nevada pays out -57.4% 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. Franco-Nevada has raised its dividend for 1 consecutive years.
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.
Summary
Franco-Nevada beats Newmont on 12 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 NYSE 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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