Financial Analysis: Franco-Nevada (NYSE:FNV) and Augusta Gold (OTCMKTS:AUGG)

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

Profitability

This table compares Franco-Nevada and Augusta Gold’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%
Augusta Gold	N/A	-34.03%	-12.24%

Insider & Institutional Ownership

77.1% of Franco-Nevada shares are owned by institutional investors. Comparatively, 52.4% of Augusta Gold shares are owned by institutional investors. 0.7% of Franco-Nevada shares are owned by company insiders. Comparatively, 45.8% of Augusta Gold shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Franco-Nevada and Augusta Gold”s 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	37.20	$552.10 million	$4.77	45.05
Augusta Gold	N/A	N/A	-$6.59 million	($0.09)	-13.51

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

Risk and Volatility

Franco-Nevada has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, Augusta Gold has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Franco-Nevada and Augusta Gold, as provided by MarketBeat.com.

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

Franco-Nevada currently has a consensus price target of $232.75, suggesting a potential upside of 8.31%. Given Franco-Nevada’s stronger consensus rating and higher probable upside, analysts clearly believe Franco-Nevada is more favorable than Augusta Gold.

Summary

Franco-Nevada beats Augusta Gold on 12 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 Augusta Gold

Augusta Gold Corp. engages in the acquisition and exploration of mineral properties in the United States. The company primarily explores for gold, silver, and other metals. It holds interests in the Bullfrog gold project consists of 734 unpatented lode mining claims and mill site claims, and 87 patented mining claims located in the Bullfrog Hills of Nye County, Nevada; and the Reward Gold Project comprises 123 unpatented Bureau of Land Management (BLM) placer and lode mining claims, and six patented placer mining claims covering approximately 2,333 acres located in Nye County, Nevada. The company was formerly known as Bullfrog Gold Corp. and changed its name to Augusta Gold Corp. in January 2021. Augusta Gold Corp. is headquartered in Vancouver, Canada.