SilverCrest Metals (NYSE:SILV – Get Free Report) and Franco-Nevada (NYSE:FNV – Get Free Report) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.
Volatility and Risk
SilverCrest Metals has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Franco-Nevada has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for SilverCrest Metals and Franco-Nevada, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
SilverCrest Metals | 0 | 2 | 1 | 0 | 2.33 |
Franco-Nevada | 0 | 3 | 8 | 0 | 2.73 |
Institutional & Insider Ownership
44.8% of SilverCrest Metals shares are owned by institutional investors. Comparatively, 77.1% of Franco-Nevada shares are owned by institutional investors. 4.1% of SilverCrest Metals shares are owned by insiders. Comparatively, 0.7% of Franco-Nevada shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares SilverCrest Metals and Franco-Nevada”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
SilverCrest Metals | $278.08 million | 5.51 | $116.72 million | $0.57 | 18.09 |
Franco-Nevada | $1.22 billion | 18.70 | -$466.40 million | ($3.16) | -37.48 |
SilverCrest Metals has higher earnings, but lower revenue than Franco-Nevada. Franco-Nevada is trading at a lower price-to-earnings ratio than SilverCrest Metals, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares SilverCrest Metals and Franco-Nevada’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
SilverCrest Metals | 30.85% | 23.35% | 20.98% |
Franco-Nevada | -55.28% | 10.55% | 10.09% |
Summary
SilverCrest Metals beats Franco-Nevada on 8 of the 14 factors compared between the two stocks.
About SilverCrest Metals
SilverCrest Metals Inc. engages in the acquiring, exploration, and development of precious metal properties in Mexico. The company primarily explores for silver and gold properties. Its focuses on principal property the Las Chispas Mine that consists of 28 concessions totaling of approximately 1,401 hectares located in Sonora, Mexico, as well as operates a portfolio of El Picacho, Cruz de Mayo, and Angel de Plata properties in Sonora Mexico. The company was incorporated in 2015 and is headquartered in Vancouver, Canada.
About Franco-Nevada
Franco-Nevada Corporation operates as a gold-focused royalty and streaming company in South America, Central America, Mexico, the United States, Canada, and internationally. It operates through Mining and Energy segments. The company manages its portfolio with a focus on precious metals, such as gold, silver, and platinum group metals; and engages in the sale of crude oil, natural gas, and natural gas liquids through a third-party marketing agent. Franco-Nevada Corporation was founded in 1986 and is headquartered in Toronto, Canada.
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