Franco-Nevada (NYSE:FNV – Get Free Report) and Vizsla Silver (NYSE:VZLA – 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 risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.
Risk and Volatility
Franco-Nevada has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Vizsla Silver has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.
Earnings and Valuation
This table compares Franco-Nevada and Vizsla Silver”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Franco-Nevada | $1.22 billion | 21.67 | -$466.40 million | ($3.16) | -43.42 |
Vizsla Silver | N/A | N/A | -$11.81 million | ($0.01) | -206.00 |
Insider & Institutional Ownership
77.1% of Franco-Nevada shares are held by institutional investors. Comparatively, 22.5% of Vizsla Silver shares are held by institutional investors. 0.7% of Franco-Nevada shares are held by company insiders. Comparatively, 7.9% of Vizsla Silver shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings for Franco-Nevada and Vizsla Silver, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Franco-Nevada | 0 | 3 | 7 | 0 | 2.70 |
Vizsla Silver | 0 | 0 | 5 | 0 | 3.00 |
Franco-Nevada currently has a consensus price target of $145.33, suggesting a potential upside of 5.93%. Vizsla Silver has a consensus price target of $4.06, suggesting a potential upside of 97.21%. Given Vizsla Silver’s stronger consensus rating and higher probable upside, analysts plainly believe Vizsla Silver is more favorable than Franco-Nevada.
Profitability
This table compares Franco-Nevada and Vizsla Silver’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% |
Vizsla Silver | N/A | -5.59% | -5.52% |
Summary
Vizsla Silver beats Franco-Nevada on 7 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 Vizsla Silver
Vizsla Silver Corp. engages in the exploration, and development of precious and base metal assets. The company explores for gold, silver, and copper deposits. It owns 100% interest in the Panuco Project covering an area of 7,189.5 hectares located in located in southern Sinaloa, Mexico. The company was formerly known as Vizsla Resources Corp. and changed its name to Vizsla Silver Corp. in February 2021. Vizsla Silver Corp. was incorporated in 2017 and is headquartered in Vancouver, Canada.
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