Head to Head Survey: Richmont Mines (RIC) and Franco Nevada (FNV)
Richmont Mines (NYSE: RIC) and Franco Nevada (NYSE:FNV) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.
This is a breakdown of recent ratings and target prices for Richmont Mines and Franco Nevada, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Franco Nevada has a consensus price target of $84.89, suggesting a potential upside of 0.52%. Given Franco Nevada’s higher probable upside, analysts plainly believe Franco Nevada is more favorable than Richmont Mines.
Insider & Institutional Ownership
53.8% of Richmont Mines shares are held by institutional investors. Comparatively, 59.9% of Franco Nevada shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Franco Nevada pays an annual dividend of $0.92 per share and has a dividend yield of 1.1%. Richmont Mines does not pay a dividend. Franco Nevada pays out 113.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Richmont Mines has increased its dividend for 4 consecutive years.
This table compares Richmont Mines and Franco Nevada’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Richmont Mines and Franco Nevada’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Richmont Mines||$127.39 million||4.81||$9.41 million||$0.22||43.64|
|Franco Nevada||$610.20 million||25.70||$122.20 million||$0.81||104.26|
Franco Nevada has higher revenue and earnings than Richmont Mines. Richmont Mines is trading at a lower price-to-earnings ratio than Franco Nevada, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Richmont Mines has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500. Comparatively, Franco Nevada has a beta of -0.14, indicating that its stock price is 114% less volatile than the S&P 500.
Franco Nevada beats Richmont Mines on 10 of the 16 factors compared between the two stocks.
Richmont Mines Company Profile
Richmont Mines Inc. is a mining company. The Company is engaged in mining, exploration and development of mining properties, principally gold. The Company operates gold mines at various sites in Quebec and Ontario. The Company’s segments include Quebec and Ontario. The Company is engaged in producing gold from the Island Gold Mine in Ontario and the Beaufor Mine in Quebec. The Island Gold mine is located 83 kilometers northeast of Wawa, Ontario. It is part of the Island Gold Project, which is divided into nine parts (properties) comprising 219 patented, leased and staked claims covering 7,772 hectares, mainly within the townships of Finan and Jacobson. The Island Gold Project is located in the Michipicoten Greenstone Belt. The Beaufor Mine is located 25 kilometers northeast of Val-d’Or, Quebec. The Camflo mill has rated capacity of 1,200 short tons per day. It is located at Malartic, Quebec. The 7.58 square kilometers Wasamac property is located in the west of Rouyn-Noranda, Quebec.
Franco Nevada Company Profile
Franco-Nevada Corporation (Franco-Nevada) is a gold-focused royalty and stream company. The Company has interests in silver, platinum group metals, oil and gas and other resource assets. The Company is engaged in resource sector royalty/stream acquisitions and management activities. It has a portfolio of properties in the United States, Canada, Mexico, Peru, Chile and Africa. Its properties in the United States include Goldstrike, Stillwater, Gold Quarry, Marigold, Fire Creek/Midas, Bald Mountain, South Arturo and Other. Its properties in Canada include Sudbury, Detour Lake, Golden Highway, Musselwhite, Hemlo, Kirkland Lake, Timmins West, Canadian Malartic and Other. Its properties in Latin America include Antapaccay, Antamina, Candelaria, Guadalupe-Palmarejo and Other. Its properties in Rest of World include Mine Waste Solutions (MWS), Sabodala, Subika, Tasiast, Karma, Duketon, Edikan and Other.
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