Franco-Nevada (NYSE:FNV – Get Free Report) and Osisko Development (NYSE:ODV – Get Free Report) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.
Risk & Volatility
Franco-Nevada has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Osisko Development has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.
Insider and Institutional Ownership
77.1% of Franco-Nevada shares are held by institutional investors. Comparatively, 15.2% of Osisko Development shares are held by institutional investors. 0.7% of Franco-Nevada 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 is poised for long-term growth.
Valuation & Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Franco-Nevada | $1.22 billion | 22.22 | -$466.40 million | ($3.16) | -44.52 |
Osisko Development | $23.43 million | 8.54 | -$134.73 million | ($1.81) | -0.81 |
Osisko Development has lower revenue, but higher earnings than Franco-Nevada. Franco-Nevada is trading at a lower price-to-earnings ratio than Osisko Development, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Franco-Nevada and Osisko Development’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Franco-Nevada | -55.28% | 10.55% | 10.09% |
Osisko Development | -1,817.64% | -11.51% | -8.41% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for Franco-Nevada and Osisko Development, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Franco-Nevada | 0 | 4 | 7 | 0 | 2.64 |
Osisko Development | 0 | 0 | 0 | 0 | 0.00 |
Franco-Nevada presently has a consensus price target of $146.71, indicating a potential upside of 4.28%. Given Franco-Nevada’s stronger consensus rating and higher probable upside, analysts clearly believe Franco-Nevada is more favorable than Osisko Development.
Summary
Franco-Nevada beats Osisko Development on 10 of the 13 factors compared between the two stocks.
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.
About Osisko Development
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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