Head-To-Head Analysis: Solgold (OTCMKTS:SLGGF) vs. Franco-Nevada (NYSE:FNV)

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

Volatility & Risk

Solgold has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Franco-Nevada has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.

Earnings and Valuation

This table compares Solgold and Franco-Nevada”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solgold	N/A	N/A	-$36.25 million	N/A	N/A
Franco-Nevada	$1.33 billion	30.90	$552.10 million	$4.07	52.57

Franco-Nevada has higher revenue and earnings than Solgold.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Solgold	N/A	-14.84%	-7.44%
Franco-Nevada	58.82%	12.56%	11.88%

Insider & 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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Solgold and Franco-Nevada, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solgold	0	0	0	0	0.00
Franco-Nevada	0	8	6	0	2.43

Franco-Nevada has a consensus target price of $194.57, indicating a potential downside of 9.06%. Given Franco-Nevada’s stronger consensus rating and higher probable upside, analysts clearly believe Franco-Nevada is more favorable than Solgold.

Summary

Franco-Nevada beats Solgold on 10 of the 11 factors compared between the two stocks.

About Solgold

SolGold Plc, a mineral exploration and development company, explores for and develops mineral properties in Ecuador, Australia, Chile, and Solomon Islands. The company primarily explores for copper, gold, silver, and molybdenum deposits. Its flagship project is the Cascabel Project that covers an area of approximately 50 square kilometers located in Imbabura province, Northern Ecuador. The company was formerly known as Solomon Gold plc and changed its name to SolGold plc in May 2012. SolGold Plc was incorporated in 2005 and is headquartered in Brisbane, Australia.

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.