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 better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Insider and 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 company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Almonty Industries and Franco-Nevada, as reported by MarketBeat.

	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, indicating a potential upside of 76.45%. Franco-Nevada has a consensus target price of $274.90, indicating a potential upside of 6.64%. Given Almonty Industries’ stronger consensus rating and higher possible upside, equities analysts clearly believe Almonty Industries is more favorable than Franco-Nevada.

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%

Volatility & Risk

Almonty Industries has a beta of 3.75, indicating that its share price is 275% more volatile than the S&P 500. Comparatively, Franco-Nevada has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.

Earnings & Valuation

This table compares Almonty Industries and Franco-Nevada”s gross revenue, earnings per share (EPS) 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.

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.