Reviewing Franco-Nevada (NYSE:FNV) and Almonty Industries (NASDAQ:ALM)

Almonty Industries (NASDAQ:ALM) and Franco-Nevada (NYSE:FNV) 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.