Fortescue (OTCMKTS:FSUGY – Get Free Report) and Fortuna Mining (NYSE:FSM – Get Free Report) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.
Institutional & Insider Ownership
33.8% of Fortuna Mining shares are held by institutional investors. 1.0% of Fortuna Mining shares are held 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.
Valuation and Earnings
This table compares Fortescue and Fortuna Mining”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Fortescue | $18.22 billion | 2.15 | $5.68 billion | N/A | N/A |
Fortuna Mining | $1.06 billion | 2.08 | $128.74 million | $0.50 | 14.40 |
Fortescue has higher revenue and earnings than Fortuna Mining.
Profitability
This table compares Fortescue and Fortuna Mining’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Fortescue | N/A | N/A | N/A |
Fortuna Mining | 14.36% | 12.74% | 8.99% |
Analyst Recommendations
This is a summary of recent recommendations for Fortescue and Fortuna Mining, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Fortescue | 1 | 1 | 0 | 1 | 2.33 |
Fortuna Mining | 1 | 3 | 1 | 0 | 2.00 |
Fortuna Mining has a consensus price target of $8.00, indicating a potential upside of 11.11%. Given Fortuna Mining’s higher probable upside, analysts plainly believe Fortuna Mining is more favorable than Fortescue.
Volatility and Risk
Fortescue has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Fortuna Mining has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.
Summary
Fortuna Mining beats Fortescue on 7 of the 13 factors compared between the two stocks.
About Fortescue
Fortescue Ltd engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally. It explores for copper, gold, and lithium deposits; and rare earth elements. The company provides port towage services; owns and operates rail and port facilities; and focuses on producing green energy and green hydrogen, including derivatives comprising green ammonia. The company was formerly known as Fortescue Metals Group Limited and changed its name to Fortescue Ltd in November 2023. Fortescue Ltd was incorporated in 1983 and is headquartered in East Perth, Australia.
About Fortuna Mining
Fortuna Mining Corp. engages in the precious and base metal mining in Argentina, Burkina Faso, Mexico, Peru, and Côte d’Ivoire. It operates through Mansfield, Sanu, Sango, Cuzcatlan, Bateas, and Corporate segments. The company primarily explores for silver, lead, zinc, and gold. Its flagship project is the Séguéla gold mine, which consists of approximately 62,000 hectares and is located in the Worodougou Region of the Woroba District, Côte d’Ivoire. The company was formerly known as Fortuna Silver Mines Inc. and changed its name to Fortuna Mining Corp. in June 2024. Fortuna Mining Corp. was incorporated in 1990 and is based in Vancouver, Canada.
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