Franco-Nevada (NYSE:FNV – Get Free Report) and Minco Capital (OTCMKTS:MGHCF – Get Free Report) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Franco-Nevada and Minco Capital, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Franco-Nevada | 0 | 4 | 11 | 0 | 2.73 |
| Minco Capital | 0 | 0 | 0 | 0 | 0.00 |
Franco-Nevada presently has a consensus price target of $271.00, suggesting a potential upside of 27.75%. Given Franco-Nevada’s stronger consensus rating and higher probable upside, equities analysts clearly believe Franco-Nevada is more favorable than Minco Capital.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Franco-Nevada | $1.82 billion | 22.44 | $1.11 billion | $7.10 | 29.88 |
| Minco Capital | N/A | N/A | $3.36 million | $0.07 | 1.23 |
Franco-Nevada has higher revenue and earnings than Minco Capital. Minco Capital is trading at a lower price-to-earnings ratio than Franco-Nevada, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Franco-Nevada and Minco Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Franco-Nevada | 65.12% | 18.10% | 16.82% |
| Minco Capital | N/A | 8.81% | 8.63% |
Risk and Volatility
Franco-Nevada has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500. Comparatively, Minco Capital has a beta of -0.12, suggesting that its stock price is 112% less volatile than the S&P 500.
Insider & Institutional Ownership
77.1% of Franco-Nevada shares are owned by institutional investors. 0.7% of Franco-Nevada shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Franco-Nevada beats Minco Capital on 13 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 Minco Capital
Minco Capital Corp., an investment company, focuses on investing in public and private companies and assets to generate income and achieve long-term capital appreciation. The company was formerly known as Minco Gold Corporation and changed its name to Minco Capital Corp. in February 2019. Minco Capital Corp. was incorporated in 1982 and is headquartered in Vancouver, Canada.
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