Contrasting Franco-Nevada (NYSE:FNV) and Jaguar Mining (OTCMKTS:JAGGF)

Franco-Nevada (NYSE:FNV) and Jaguar Mining (OTCMKTS:JAGGF) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Franco-Nevada	61.01%	15.62%	14.61%
Jaguar Mining	-11.66%	10.69%	7.31%

Volatility and Risk

Franco-Nevada has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, Jaguar Mining has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Institutional and Insider Ownership

77.1% of Franco-Nevada shares are owned by institutional investors. 0.7% of Franco-Nevada shares are owned by insiders. Comparatively, 0.6% of Jaguar Mining shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Franco-Nevada and Jaguar Mining, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franco-Nevada	0	6	8	0	2.57
Jaguar Mining	0	0	0	0	0.00

Franco-Nevada presently has a consensus price target of $257.25, suggesting a potential upside of 10.92%. Given Franco-Nevada’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Franco-Nevada is more favorable than Jaguar Mining.

Valuation and Earnings

This table compares Franco-Nevada and Jaguar Mining”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franco-Nevada	$1.82 billion	24.54	$1.11 billion	$5.76	40.26
Jaguar Mining	$135.17 million	3.25	-$15.78 million	($0.18)	-28.61

Franco-Nevada has higher revenue and earnings than Jaguar Mining. Jaguar Mining is trading at a lower price-to-earnings ratio than Franco-Nevada, indicating that it is currently the more affordable of the two stocks.

Summary

Franco-Nevada beats Jaguar Mining on 13 of the 14 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 Jaguar Mining

Jaguar Mining Inc., a junior gold mining company, engages in the acquisition, exploration, development, and operation of gold mineral properties in Brazil. The company's principal assets include the Turmalina Gold Mine Complex and Caeté Gold Mine Complex with mineral claims covering an area of approximately 56,000 hectares located in the Iron Quadrangle in the state of Minas Gerais. It also owns the Paciência Gold Mine complex. Jaguar Mining Inc. is headquartered in Toronto, Canada.