FNV vs. WPM, ABX, AEM, K, TNX, PAAS, AGI, NGT, TECK.B, and NTR
Should you be buying Franco-Nevada stock or one of its competitors? The main competitors of Franco-Nevada include Wheaton Precious Metals (WPM), Barrick Gold (ABX), Agnico Eagle Mines (AEM), Kinross Gold (K), TRX Gold (TNX), Pan American Silver (PAAS), Alamos Gold (AGI), Newmont (NGT), Teck Resources (TECK.B), and Nutrien (NTR). These companies are all part of the "basic materials" sector.
Wheaton Precious Metals (TSE:WPM) and Franco-Nevada (TSE:FNV) are both large-cap basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings, community ranking, media sentiment and profitability.
Wheaton Precious Metals presently has a consensus target price of C$84.33, indicating a potential upside of 8.69%. Franco-Nevada has a consensus target price of C$191.50, indicating a potential upside of 9.59%. Given Wheaton Precious Metals' higher probable upside, analysts clearly believe Franco-Nevada is more favorable than Wheaton Precious Metals.
70.5% of Wheaton Precious Metals shares are held by institutional investors. Comparatively, 82.1% of Franco-Nevada shares are held by institutional investors. 0.3% of Wheaton Precious Metals shares are held by insiders. Comparatively, 0.7% of Franco-Nevada shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Wheaton Precious Metals has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Franco-Nevada has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.
Franco-Nevada received 304 more outperform votes than Wheaton Precious Metals when rated by MarketBeat users. Likewise, 47.74% of users gave Franco-Nevada an outperform vote while only 33.33% of users gave Wheaton Precious Metals an outperform vote.
In the previous week, Wheaton Precious Metals had 15 more articles in the media than Franco-Nevada. MarketBeat recorded 17 mentions for Wheaton Precious Metals and 2 mentions for Franco-Nevada. Wheaton Precious Metals' average media sentiment score of 0.78 beat Franco-Nevada's score of 0.67 indicating that Franco-Nevada is being referred to more favorably in the news media.
Wheaton Precious Metals has a net margin of 52.92% compared to Wheaton Precious Metals' net margin of -39.96%. Franco-Nevada's return on equity of 7.85% beat Wheaton Precious Metals' return on equity.
Wheaton Precious Metals pays an annual dividend of C$0.85 per share and has a dividend yield of 1.1%. Franco-Nevada pays an annual dividend of C$1.98 per share and has a dividend yield of 1.1%. Wheaton Precious Metals pays out 52.1% of its earnings in the form of a dividend. Franco-Nevada pays out -58.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Franco-Nevada is clearly the better dividend stock, given its higher yield and lower payout ratio.
Wheaton Precious Metals has higher earnings, but lower revenue than Franco-Nevada. Franco-Nevada is trading at a lower price-to-earnings ratio than Wheaton Precious Metals, indicating that it is currently the more affordable of the two stocks.
Summary
Wheaton Precious Metals and Franco-Nevada tied by winning 10 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding FNV and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of TSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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