Analyzing Fortuna Silver Mines (NYSE:FSM) and Osisko Development (NYSE:ODV)

Fortuna Silver Mines (NYSE:FSMGet Free Report) and Osisko Development (NYSE:ODVGet Free Report) are both small-cap basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.

Volatility and Risk

Fortuna Silver Mines has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500. Comparatively, Osisko Development has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Fortuna Silver Mines and Osisko Development, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fortuna Silver Mines 0 1 0 0 2.00
Osisko Development 0 1 0 0 2.00

Fortuna Silver Mines currently has a consensus price target of $7.63, suggesting a potential upside of 57.05%. Given Fortuna Silver Mines’ higher probable upside, analysts plainly believe Fortuna Silver Mines is more favorable than Osisko Development.

Earnings and Valuation

This table compares Fortuna Silver Mines and Osisko Development’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fortuna Silver Mines $842.43 million 1.76 -$50.84 million ($0.16) -30.34
Osisko Development $31.63 million 4.90 -$134.73 million ($1.60) -1.15

Fortuna Silver Mines has higher revenue and earnings than Osisko Development. Fortuna Silver Mines is trading at a lower price-to-earnings ratio than Osisko Development, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

33.8% of Fortuna Silver Mines shares are held by institutional investors. Comparatively, 15.2% of Osisko Development shares are held by institutional investors. 1.0% of Fortuna Silver Mines shares are held by company insiders. Comparatively, 0.9% of Osisko Development shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Fortuna Silver Mines and Osisko Development’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fortuna Silver Mines -5.99% 5.03% 3.34%
Osisko Development -570.64% -6.24% -4.72%

Summary

Fortuna Silver Mines beats Osisko Development on 10 of the 12 factors compared between the two stocks.

About Fortuna Silver Mines

(Get Free Report)

Fortuna Silver Mines Inc. engages in the precious and base metal mining in Argentina, Burkina Faso, Mexico, Peru, and Côte d'Ivoire. It operates through Mansfield, Sanu, Sango, Cuzcatlan, Bateas, and Corporate segments. The company primarily explores for silver, lead, zinc, and gold. Its flagship project is the Séguéla gold mine, which consists of approximately 62,000 hectares and is located in the Worodougou Region of the Woroba District, Côte d'Ivoire. The company was formerly known as Fortuna Ventures Inc. and changed its name to Fortuna Silver Mines Inc. in June 2005. Fortuna Silver Mines Inc. was incorporated in 1990 and is based in Vancouver, Canada.

About Osisko Development

(Get Free Report)

Osisko Development Corp. acquires, explores, and develops mineral properties in Canada, Mexico, and the United States. It explores for gold; and precious and base metals. The company's flagship asset is the Cariboo Gold Project covering an area of approximately 155,000 hectares consisting of 415 mineral titles located in British Columbia, Canada. It also holds a portfolio of marketable securities. Osisko Development Corp. is based in Montréal, Canada.

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