Analyzing Dakota Territory Resource (OTCMKTS:DTRC) & Franco-Nevada (NYSE:FNV)

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

Profitability

This table compares Franco-Nevada and Dakota Territory Resource’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%
Dakota Territory Resource	N/A	N/A	N/A

Institutional & Insider Ownership

77.1% of Franco-Nevada shares are held by institutional investors. 0.7% of Franco-Nevada shares are held by insiders. Comparatively, 59.3% of Dakota Territory Resource shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Franco-Nevada and Dakota Territory Resource, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franco-Nevada	0	6	7	1	2.64
Dakota Territory Resource	0	0	0	0	0.00

Franco-Nevada currently has a consensus price target of $232.75, indicating a potential upside of 7.03%. Given Franco-Nevada’s stronger consensus rating and higher possible upside, equities analysts clearly believe Franco-Nevada is more favorable than Dakota Territory Resource.

Earnings and Valuation

This table compares Franco-Nevada and Dakota Territory Resource”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franco-Nevada	$1.11 billion	37.65	$552.10 million	$4.77	45.59
Dakota Territory Resource	N/A	N/A	N/A	N/A	N/A

Franco-Nevada has higher revenue and earnings than Dakota Territory Resource.

Summary

Franco-Nevada beats Dakota Territory Resource on 9 of the 10 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 Dakota Territory Resource

Dakota Territory Resource Corp., an exploration stage company, engages in the acquisition, exploration, and development of gold properties in the United States. It holds 100% interests in eight mineral properties, including the Blind Gold, City Creek, Tinton, West Corridor, Ragged Top, Poorman Anticline, Maitland, and Homestake Paleoplacer properties covering an area of approximately 19,500 acres located in the Black Hills of South Dakota. The company was formerly known as Mustang Geothermal Corp and changed its name to Dakota Territory Resource Corp. in September 2012. Dakota Territory Resource Corp. was incorporated in 2002 and is headquartered in Lead, South Dakota.