Aris Mining (NYSE:ARMN) versus Franco-Nevada (NYSE:FNV) Critical Comparison

Aris Mining (NYSE:ARMN) and Franco-Nevada (NYSE:FNV) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.

Valuation & Earnings

This table compares Aris Mining and Franco-Nevada”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aris Mining	$447.67 million	1.72	$11.42 million	$0.08	56.50
Franco-Nevada	$1.22 billion	20.80	-$466.40 million	($3.04)	-43.33

Aris Mining has higher earnings, but lower revenue than Franco-Nevada. Franco-Nevada is trading at a lower price-to-earnings ratio than Aris Mining, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Aris Mining and Franco-Nevada, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aris Mining	0	0	0	0	N/A
Franco-Nevada	0	3	5	0	2.63

Franco-Nevada has a consensus target price of $154.57, indicating a potential upside of 17.36%. Given Franco-Nevada’s higher probable upside, analysts plainly believe Franco-Nevada is more favorable than Aris Mining.

Profitability

This table compares Aris Mining and Franco-Nevada’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aris Mining	2.46%	6.00%	3.06%
Franco-Nevada	-51.64%	10.56%	10.15%

Insider & Institutional Ownership

35.8% of Aris Mining shares are held by institutional investors. Comparatively, 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 company will outperform the market over the long term.

Summary

Franco-Nevada beats Aris Mining on 8 of the 12 factors compared between the two stocks.

About Aris Mining

Aris Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, development, and operation of gold properties in Canada, Colombia, and Guyana. It also explores for silver and copper deposits. The company was formerly known as GCM Mining Corp. and changed its name to Aris Mining Corporation in September 2022. Aris Mining Corporation is based 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.