Head-To-Head Analysis: NioCorp Developments (NASDAQ:NB) and Franklin Mining (OTCMKTS:FMNJ)

Franklin Mining (OTCMKTS:FMNJ) and NioCorp Developments (NASDAQ:NB) are both small-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Valuation & Earnings

This table compares Franklin Mining and NioCorp Developments”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franklin Mining	N/A	N/A	-$430,000.00	($0.03)	-0.09
NioCorp Developments	N/A	N/A	-$17.41 million	($0.81)	-5.47

NioCorp Developments is trading at a lower price-to-earnings ratio than Franklin Mining, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

4.0% of NioCorp Developments shares are owned by institutional investors. 20.0% of Franklin Mining shares are owned by company insiders. Comparatively, 8.2% of NioCorp Developments shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Franklin Mining and NioCorp Developments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Franklin Mining	N/A	N/A	N/A
NioCorp Developments	N/A	-25.73%	-21.10%

Volatility and Risk

Franklin Mining has a beta of -0.2, meaning that its share price is 120% less volatile than the S&P 500. Comparatively, NioCorp Developments has a beta of -0.12, meaning that its share price is 112% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Franklin Mining and NioCorp Developments, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franklin Mining	0	0	0	0	0.00
NioCorp Developments	1	1	3	0	2.40

NioCorp Developments has a consensus price target of $8.32, indicating a potential upside of 87.74%. Given NioCorp Developments’ stronger consensus rating and higher possible upside, analysts plainly believe NioCorp Developments is more favorable than Franklin Mining.

Summary

Franklin Mining beats NioCorp Developments on 6 of the 11 factors compared between the two stocks.

About Franklin Mining

Franklin Mining, Inc., a mining and exploration company, acquires and develops mineral properties. The company explores for gold, silver, lead, and zinc deposits. It owns interests in the La Joya mining concession in Bolivia; and Madre de Dios Area, Ch-Mine, and Los Totems project in Peru. The company was formerly known as WCM Capital, Inc. Franklin Mining, Inc. was founded in 1864 and is based in Carson City, Nevada.

About NioCorp Developments

NioCorp Developments Ltd. engages in the exploration and development of mineral deposits in North America. It owns and develops the Elk Creek niobium/scandium/titanium project that owns one 226.43-acre parcel of land and associated mineral rights, and an additional 40 acres of mineral rights, as well as an optioned land package that covers an area of 1,396 acres located in Johnson County, southeast Nebraska. The company was formerly known as Quantum Rare Earth Developments Corp. and changed its name to NioCorp Developments Ltd. in March 2013. NioCorp Developments Ltd. was incorporated in 1987 and is headquartered in Centennial, Colorado.