Pelangio Exploration (OTCMKTS:PGXPF) and Franco-Nevada (NYSE:FNV) Critical Analysis

Franco-Nevada (NYSE:FNV) and Pelangio Exploration (OTCMKTS:PGXPF) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.

Analyst Ratings

This is a summary of current ratings and target prices for Franco-Nevada and Pelangio Exploration, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franco-Nevada	0	6	7	1	2.64
Pelangio Exploration	0	0	0	0	0.00

Franco-Nevada presently has a consensus price target of $232.75, indicating a potential downside of 12.20%. Given Franco-Nevada’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Franco-Nevada is more favorable than Pelangio Exploration.

Insider & 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 company is poised for long-term growth.

Risk and Volatility

Franco-Nevada has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, Pelangio Exploration has a beta of 0.01, suggesting that its stock price is 99% less volatile than the S&P 500.

Valuation and Earnings

This table compares Franco-Nevada and Pelangio Exploration”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franco-Nevada	$1.11 billion	45.90	$552.10 million	$4.77	55.57
Pelangio Exploration	N/A	N/A	-$550,000.00	N/A	N/A

Franco-Nevada has higher revenue and earnings than Pelangio Exploration.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Franco-Nevada	59.48%	13.94%	13.12%
Pelangio Exploration	N/A	-778.64%	-87.35%

Summary

Franco-Nevada beats Pelangio Exploration on 12 of the 12 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 Pelangio Exploration

Pelangio Exploration Inc., a mineral exploration company, engages in acquiring, exploring, and developing mineral properties. It holds interests in various gold properties in Ghana and Canada. The company was incorporated in 2008 and is headquartered in Toronto, Canada.