Reviewing Franco-Nevada (NYSE:FNV) and Almonty Industries (NASDAQ:ALM)
by Sarita Garza · The Markets DailyAlmonty Industries (NASDAQ:ALM – Get Free Report) and Franco-Nevada (NYSE:FNV – Get Free Report) are both materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.
Valuation & Earnings
This table compares Almonty Industries and Franco-Nevada”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Almonty Industries | $23.27 million | 169.87 | -$115.88 million | $0.16 | 85.75 |
| Franco-Nevada | $2.32 billion | 21.46 | $1.11 billion | $7.65 | 33.70 |
Franco-Nevada has higher revenue and earnings than Almonty Industries. Franco-Nevada is trading at a lower price-to-earnings ratio than Almonty Industries, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Almonty Industries has a beta of 3.75, indicating that its stock price is 275% more volatile than the S&P 500. Comparatively, Franco-Nevada has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Almonty Industries and Franco-Nevada, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Almonty Industries | 0 | 2 | 5 | 1 | 2.88 |
| Franco-Nevada | 0 | 4 | 11 | 0 | 2.73 |
Almonty Industries currently has a consensus target price of $24.21, suggesting a potential upside of 76.45%. Franco-Nevada has a consensus target price of $274.90, suggesting a potential upside of 6.64%. Given Almonty Industries’ stronger consensus rating and higher probable upside, analysts plainly believe Almonty Industries is more favorable than Franco-Nevada.
Insider and Institutional Ownership
77.1% of Franco-Nevada shares are held by institutional investors. 0.7% of Franco-Nevada shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Almonty Industries and Franco-Nevada’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Almonty Industries | 125.89% | 9.19% | 3.97% |
| Franco-Nevada | 63.79% | 18.58% | 17.19% |
Summary
Franco-Nevada beats Almonty Industries on 8 of the 15 factors compared between the two stocks.
About Almonty Industries
Almonty Industries Inc. is a producer of tungsten concentrate. The Company is currently mining, processing and shipping tungsten concentrate from its Panasqueira Mine in Portugal. Almonty Industries Inc. is based in TORONTO.
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.