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.
Franco-Nevada (NYSE:FNV) and Newmont (NYSE:NEM) are both large-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, media sentiment, valuation, dividends and community ranking.
77.1% of Franco-Nevada shares are held by institutional investors. Comparatively, 68.9% of Newmont shares are held by institutional investors. 0.7% of Franco-Nevada shares are held by company insiders. Comparatively, 0.1% of Newmont shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Franco-Nevada has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Newmont has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500.
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.
Franco-Nevada has higher earnings, but lower revenue 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.
Franco-Nevada presently has a consensus price target of $148.70, indicating a potential upside of 20.11%. Newmont has a consensus price target of $48.36, indicating a potential upside of 15.30%. Given Franco-Nevada's higher possible upside, equities analysts clearly believe Franco-Nevada is more favorable than Newmont.
Franco-Nevada pays an annual dividend of $1.43 per share and has a dividend yield of 1.2%. Newmont pays an annual dividend of $1.00 per share and has a dividend yield of 2.4%. Franco-Nevada pays out -57.4% of its earnings in the form of a dividend. Newmont pays out -37.5% 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.
Newmont has a net margin of -20.19% compared to Franco-Nevada's net margin of -39.88%. Franco-Nevada's return on equity of 10.81% beat Newmont's return on equity.
In the previous week, Newmont had 14 more articles in the media than Franco-Nevada. MarketBeat recorded 24 mentions for Newmont and 10 mentions for Franco-Nevada. Franco-Nevada's average media sentiment score of 1.32 beat Newmont's score of 0.57 indicating that Franco-Nevada is being referred to more favorably in the media.
Summary
Franco-Nevada beats Newmont on 11 of the 19 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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